Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
Related questions
Question
![Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how
much she should invest now (in $) at 6% interest, compounded
semiannually in order to reach this goal. (Round your answer to the nearest
cent.)
8,305.13](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3479245-9907-4aff-b901-35043660c46a%2Fc1fc274f-b0dd-4cb7-890e-b4635a38343c%2Fdnfz3fe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how
much she should invest now (in $) at 6% interest, compounded
semiannually in order to reach this goal. (Round your answer to the nearest
cent.)
8,305.13
![TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest)
1%
Periods
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
1
2
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
5
6.
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
8.
9
0.95610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
9
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
15
16
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.39365
0.33873
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.43630
0.37136
0.31657
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.49363
0.41552
0.35034
0.29586
0.25025
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.47464
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
21
0.90056
0.81143
0.73150
0.65978
0.53755
0.43883
0.35894
0.29416
0.24151
0.19866
21
22
0.89608
0.80340
0.72069
0.64684
0.52189
0.42196
0.34185
0.27751
0.22571
0.18394
22
23
0.89162
0.79544
0.71004
0.63416
0.50669
0.40573
0.32557
0.26180
0.21095
0.17032
23
24
0.88719
0.78757
0.69954
0.62172
0.49193
0.39012
0.31007
0.24698
0.19715
0.15770
24
25
0.88277
0.77977
0.68921
0.60953
0.47761
0.37512
0.29530
0.23300
0.18425
0.14602
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
0.91743
0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
1
2
0.84168
0.82645
0.81162
0.79719
0.78315
0.76947
0.75614
0.74316
0.73051
0.71818
3
0.77218
0.75131
0.73119
0.71178
0.69305
0.67497
0.65752
0.64066
0.62437
0.60863
3
4
0.70843
0.68301
0.65873
0.63552
0.61332
0.59208
0.57175
0.55229
0.53365
0.51579
4
0.64993
0.62092
0.59345
0.56743
0.54276
0.51937
0.49718
0.47611
0.45611
0.43711
6.
0.59627
0.56447
0.53464
0.50663
0.48032
0.45559
0.43233
0.41044
0.38984
0.37043
6.
7
0.54703
0.51316
0.48166
0.45235
0.42506
0.39964
0.37594
0.35383
0.33320
0.31393
7
0.50187
0.46651
0.43393
0.40388
0.37616
0.35056
0.32690
0.30503
0.28478
0.26604
8
9
0.46043
0.42410
0.39092
0.36061
0.33288
0.30751
0.28426
0.26295
0.24340
0.22546
9
10
0.42241
0.38554
0.35218
0.32197
0.29459
0.26974
0.24718
0.22668
0.20804
0.19106
10
11
0.38753
0.35049
0.31728
0.28748
0.26070
0.23662
0.21494
0.19542
0.17781
0.16192
11
12
0.35553
0.31863
0.28584
0.25668
0.23071
0.20756
0.18691
0.16846
0.15197
0.13722
12
13
0.32618
0.28966
0.25751
0.22917
0.20416
0.18207
0.16253
0.14523
0.12989
0.11629
13
14
0.29925
0.26333
0.23199
0.20462
0.18068
0.15971
0.14133
0.12520
0.11102
0.09855
14
15
0.27454
0.23939
0.20900
0.18270
0.15989
0.14010
0.12289
0.10793
0.09489
0.08352
15
16
0.25187
0.21763
0.18829
0.16312
0.14150
0.12289
0.10686
0.09304
0.08110
0.07078
16
17
0.23107
0.19784
0.16963
0.14564
0.12522
0.10780
0.09293
0.08021
0.06932
0.05998
17
18
0.21199
0.17986
0.15282
0.13004
0.11081
0.09456
0.08081
0.06914
0.05925
0.05083
18
19
0.19449
0.16351
0.13768
0.11611
0.09806
0.08295
0.07027
0.05961
0.05064
0.04308
19
20
0.17843
0.14864
0.12403
0.10367
0.08678
0.07276
0.06110
0.05139
0.04328
0.03651
20
21
0.16370
0.13513
0.11174
0.09256
0.07680
0.06383
0.05313
0.04430
0.03699
0.03094
21
22
0.15018
0.12285
0.10067
0.08264
0.06796
0.05599
0.04620
0.03819
0.03162
0.02622
22
23
0.13778
0.11168
0.09069
0.07379
0.06014
0.04911
0.04017
0.03292
0.02702
0.02222
23
24
0.12640
0.10153
0.08170
0.06588
0.05323
0.04308
0.03493
0.02838
0.02310
0.01883
24
25
0.11597
0.09230
0.07361
0.05882
0.04710
0.03779
0.03038
0.02447
0.01974
0.01596
25
1
rounded to five decimal places, where i is the interest rate per period and
The values in Table 11-2 were generated by the formula PV =
n is the total number of periods.
(1 + i)"](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3479245-9907-4aff-b901-35043660c46a%2Fc1fc274f-b0dd-4cb7-890e-b4635a38343c%2Fc4055v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest)
1%
Periods
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
1
2
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
5
6.
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
8.
9
0.95610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
9
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
15
16
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.39365
0.33873
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.43630
0.37136
0.31657
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.49363
0.41552
0.35034
0.29586
0.25025
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.47464
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
21
0.90056
0.81143
0.73150
0.65978
0.53755
0.43883
0.35894
0.29416
0.24151
0.19866
21
22
0.89608
0.80340
0.72069
0.64684
0.52189
0.42196
0.34185
0.27751
0.22571
0.18394
22
23
0.89162
0.79544
0.71004
0.63416
0.50669
0.40573
0.32557
0.26180
0.21095
0.17032
23
24
0.88719
0.78757
0.69954
0.62172
0.49193
0.39012
0.31007
0.24698
0.19715
0.15770
24
25
0.88277
0.77977
0.68921
0.60953
0.47761
0.37512
0.29530
0.23300
0.18425
0.14602
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
0.91743
0.90909
0.90090
0.89286
0.88496
0.87719
0.86957
0.86207
0.85470
0.84746
1
2
0.84168
0.82645
0.81162
0.79719
0.78315
0.76947
0.75614
0.74316
0.73051
0.71818
3
0.77218
0.75131
0.73119
0.71178
0.69305
0.67497
0.65752
0.64066
0.62437
0.60863
3
4
0.70843
0.68301
0.65873
0.63552
0.61332
0.59208
0.57175
0.55229
0.53365
0.51579
4
0.64993
0.62092
0.59345
0.56743
0.54276
0.51937
0.49718
0.47611
0.45611
0.43711
6.
0.59627
0.56447
0.53464
0.50663
0.48032
0.45559
0.43233
0.41044
0.38984
0.37043
6.
7
0.54703
0.51316
0.48166
0.45235
0.42506
0.39964
0.37594
0.35383
0.33320
0.31393
7
0.50187
0.46651
0.43393
0.40388
0.37616
0.35056
0.32690
0.30503
0.28478
0.26604
8
9
0.46043
0.42410
0.39092
0.36061
0.33288
0.30751
0.28426
0.26295
0.24340
0.22546
9
10
0.42241
0.38554
0.35218
0.32197
0.29459
0.26974
0.24718
0.22668
0.20804
0.19106
10
11
0.38753
0.35049
0.31728
0.28748
0.26070
0.23662
0.21494
0.19542
0.17781
0.16192
11
12
0.35553
0.31863
0.28584
0.25668
0.23071
0.20756
0.18691
0.16846
0.15197
0.13722
12
13
0.32618
0.28966
0.25751
0.22917
0.20416
0.18207
0.16253
0.14523
0.12989
0.11629
13
14
0.29925
0.26333
0.23199
0.20462
0.18068
0.15971
0.14133
0.12520
0.11102
0.09855
14
15
0.27454
0.23939
0.20900
0.18270
0.15989
0.14010
0.12289
0.10793
0.09489
0.08352
15
16
0.25187
0.21763
0.18829
0.16312
0.14150
0.12289
0.10686
0.09304
0.08110
0.07078
16
17
0.23107
0.19784
0.16963
0.14564
0.12522
0.10780
0.09293
0.08021
0.06932
0.05998
17
18
0.21199
0.17986
0.15282
0.13004
0.11081
0.09456
0.08081
0.06914
0.05925
0.05083
18
19
0.19449
0.16351
0.13768
0.11611
0.09806
0.08295
0.07027
0.05961
0.05064
0.04308
19
20
0.17843
0.14864
0.12403
0.10367
0.08678
0.07276
0.06110
0.05139
0.04328
0.03651
20
21
0.16370
0.13513
0.11174
0.09256
0.07680
0.06383
0.05313
0.04430
0.03699
0.03094
21
22
0.15018
0.12285
0.10067
0.08264
0.06796
0.05599
0.04620
0.03819
0.03162
0.02622
22
23
0.13778
0.11168
0.09069
0.07379
0.06014
0.04911
0.04017
0.03292
0.02702
0.02222
23
24
0.12640
0.10153
0.08170
0.06588
0.05323
0.04308
0.03493
0.02838
0.02310
0.01883
24
25
0.11597
0.09230
0.07361
0.05882
0.04710
0.03779
0.03038
0.02447
0.01974
0.01596
25
1
rounded to five decimal places, where i is the interest rate per period and
The values in Table 11-2 were generated by the formula PV =
n is the total number of periods.
(1 + i)"
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