Tait is entering high school and is determined to save money for college. Tait feels he can save $2.500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Reference
Tait is entering high school and is determined to save money for college. Tait feels he can save $2.500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Reference
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5MC: If you are saving the same amount each month in order to buy a new sports car when the new models...
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Transcribed Image Text:Tait is entering high school and is determined to save money for college. Tait feels he can save $2,500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college?
(Click the icon to view Present Value of $1 table.)
E (Click the icon to view Present Value of Ordinary Annuity of $1 table.)
(Click the icon to view Future Value of $1 table.)
E (Click the icon to view Future Value of Ordinary Annuity of $1 table.)
- X
Reference
(Round your answer to the nearest dollar.)
Reference
When Tait starts college he will have
Present Value of $1
Periods
Period 1
Period 2
Period 3
Period 4
Period 5
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
15%
16%
18%
20%
Future Value of $1
0.990 0.980 0.971 0.962 0.952 0.943
0.980 0.961 0.943 0.925 0.907
0.971 0.942 0.915 0.889 0.864 0.840
0.961 0.924 0.888 0.855 0.823 0.792
0.951 0.906 0.863 0.822 0.784 0.747
0.917 0.909 0.893 | 0.877 0.870 0.862 0.847 0.833
0.826 0.797 0.769 0.756 0.743
0.935
0.926
0.890
0.873
0.857
0.842
0.718 0.694
Periods
Period 1
Period 2
Period 3
Period 4
Period 5
1%
2%
3%
4%
5%
6%
7%
9%
10%
12%
14%
1.120 1.140
8%
15%
0.816
0.763 0.735
0.713 0.681
0.772 0.751 0.712 0.675 0.658
0.708 0.683 0.636
0.650 0.621
0.794
0.641
0.609 0.579
1.030 1.040 1.050 1.060 1.070 1.080
1.061 1.082 1.103 1.124 1.145 1.166
1.010| 1.020
1.090 1.100
1.150
0.592 | 0.572 0.552
0.519 | 0.497 0.476
0.516 | 0.482
0.437
1.020
1.040
1.188 1.210 1.254
1.300
1.405 1,482
1.574 1.689
1.762 1.925 2.011
1.323
0.567
0.402
1.030| 1.061
1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331
1.360 1.412 1.464
1.276 | 1.338 1.403 1.469 1.539 1.611
1.521
1.082 1.126 1.170 1.216 1.262 1.311
1.104 1.159 1.217
Period 6
Period 7
Period 8
Period 9
0.942 0.888 0.837 0.790 0.746 0.705
0.933 0.871 0.813 0.760 0.711 0.665 0.623
0.923 0.853 0.789 0.731 0,677
0.914 0.837 0.766 0.703 0.645 0.592 0.544
Period 10 0.905 0.820 | 0.744 0.676 0.614 | 0.558 0.508
0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335
0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279
0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233
0.500 0.460 0.424 0.361 | 0.308 0.284 0.263 0.225 0.194
0.463 0.422 | 0.386 | 0.322 | O.270 0.247 0. 227 0.191 0.162
1.041
1.749
0.666
0.630
1.051
0.583
0.627 0.582
0.540
Period 6
Period 7
Period 8
Period 9
Period 10
1.587 1.677 1.772 1.974 2.195 2.313
1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660
1.718 1.851 1.993 2.144 2476 2.853 3.059
1.094 1.195| 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518
1.344 1.480| 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046
1.062
1.126 1.194 1.265| 1.340 | 1.419 1.501
1.072 1.149 1.230 1.316
1.083
1.172 1.267 1,369
1.477 1.594
Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475
Period 12 0.887 0.788 0.701 0.625 0.557 0.497
Period 13 0.879 0.773 0.681 0.601 | 0.530 0.469
Period 14 0.870 0.758 0.661 0.577 0.505 0.442
Period 15 0.861 0.743 0.642 0.555 0.481 0.417
0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135
0.397 0.356 0.319 0.257
0.368 0.3260.290 0.229
0.340 | 0.299 | 0.263 0.205
0.315 0.275 0.239 | 0.183
1.105| 1,219
4.226 4.652
4,818| 5.350
1.469 1.665 1.886 2.133 2410 2.720 3.066 3.452 4.363 5.492 6.153
4.887 6.261 7.076
1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137
0.444
0.415
0.388
0.208 0.187| 0.168 0.137 0.112
0.182 0.163 0.145 0.116 0.093
0.160 0.141| 0.125 0.099 0.078
0.140 0.123 0.108 0.084 0.065
1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479
1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896
Period 11
Period 12
Period 13
Period 14
Period 15
1.116
1.127
1.138
1.243
1.268
1.294
0.362
Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339
Period 17 0.844 0.714 0.605 0.513 0.436
Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296
Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277
Period 20 0.820 0.673 0.554 0.456 0.377
1.149
1.319
1.513 1.732 1.980 2.261 | 2.579 2.937 3.342 3.798
0.292 0.2520.218 0.163 0.123
0.107 0.093 0.071
0.054
1.161
0.371| 0.317 0.270 0.231 0.198 | 0.146 | o.108 0.093 0.080 | 0.060 | 0.045
0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038
0.194 0.164| 0.116 0.083 0.070 0.060 | 0.043 0.031
0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026
0.250
Period 16
Period 17
Period 18
Period 19
Period 20
1.173 1,373
1.184| 1.400
1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358
6.866 9.276 | 10.76
7.690 10.58| 12.38
8.613 12.06 14,23
9.646 13.74| 16.37
0.232
1.653 1.948 2.292 2.693 3.159 | 3.700 | 4.328 | 5.054
2.407 2.854 3.380 | 3.996 4.717 5.560
1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116
4.661 5.604 6.727
0.312 0.258
0.215
1.196
1.428
1.702 2.026
Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 | 0.093 | 0.064 0.053 0.044 0.031 0.022
0.026 0.018
0.211| 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015
1.208
1.457
1.220
1.486
1.806 2.191
2.653 3.207 3.870
Period 22 0.803 0.647 0.522 0.422 0.342| 0.278 | 0.226 0.184 0.150 0.123 | 0.083 | 0.056 0.046 0.038
Period 21
Period 22
Period 23
Period 24
Period 25
Period 23 0.795 0.634 0.507 0.406 0.326 0.262
0.788 0.622 0.492 0.390 0.310 0.247
0.295 0.233
1.860 2.279 2.786 3.400 4.141
15.67 18.82
1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64
1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.
15.18 23.21 28.63
17.00 26.46 32.92
1.232
1.516
5.034 6.109 7.400 10.80
0.158 0.126 0.102 0.066
0.146 0.116| 0.092 0.059
0.135 0.106 | 0.084 | 0.053 | o.033 0.026 0.021
0.125 0.098 0.076 | 0.047
0.116 0.090 | 0.069 0.042 0.026 0.020 | 0.016 0.010 0.006
Period 24
Period 25
0.197
0.043 0.035 0.028
0.019 0.013
1.245
1.257 1.577
1.270 | 1.608| 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850
1.546
0.780 0.610 0.478 0.375
0.184
0.038 0.030 0.024
0.016 0.010
Period 26 0.772 0.598 0.464 0.361 0.281 0.220| 0.172
Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161
Period 28 0.757 0.574 0.437 0.333 0.255 0.196 0.150
Period 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141
Period 30 0.742 0.552 0.412 0.308 0.231 0.174 | 0.131
0.014 0.009
1.282
1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83
0.029 0.023 0.018 | 0.011 0.007
4.549 5.807 7.396 | 9.399 11.92
1.707 2.221 2.883 3.733 4.822 6.214 | 7.988 10.25 13.11| 21.32 34.39 43.54
1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07
1.776 2.357 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58
1.348 1.811 2427 3.243 4.322 5.743 7.612 10.06 13.27 17.45 29.96 50.95 66.21
1.673 2.157| 2.772 | 3.556
Period 26
Period 27
Period 28
Period 29
Period 30
1.295
19.04 30,17 37.86
0.107
0.082 0.063
0.037
0.022 0.017 0.014 0.008 | 0.005
1.308
0.099 0.075 0.057 0.033 0.020 0.015 0.012 0.007 0.004
1.321
1.335
Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067
0.046 0.032 0.022 | 0.011
0.005 0.004 0.003 0.001 0.001
Period 50 0.608 0.372 0.228 0.141 0.087
0.054 0.034
0.021
0.013 0.009| 0.003 0.001 0.001 0.001
Period 40
1.489 | 2.208 3.262 4.801 7.040 10.29 14.97 21.72 31.41 45.26 93.05 188.9 267.9
Period 50
1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 700.2 1,084
Transcribed Image Text:Future Value of Ordinary Annuity of $1
Present Value of Ordinary Annuity of $1
Periods
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
15%
Periods
1%
0.990 | 0.980
1.970| 1.942
2.941 2.884 2.829
3.902 | 3.808
4.853 4.713
2%
3%
20%
0.862 0.847 0.833
1.566| 1.528
2.283 2.246 2.174 2.106
3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914| 2.855 2.798 2.690 2.589
3.605 3.433 3.352 3.274 3.127 2.991
4%
5%
6%
7%
8%
9%
10%
12%
14%
15%
16%
18%
Period 1
Period 2
Period 3
Period 4
Period 5
1.000 1.000 1.000 1.000 1.000 1.000
2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150
Period 1
Period 2
Period 3
Period 4
Period 5
1.000 1.000 1.000 1.000
1.000 1.000 1.000
0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870
1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605
2.775 2.723 2.673 2.624 2.577 2.531 2.487
1.913
1.886
3.030 3.060 3.091 3.122 3.153
4.060 4.122 4.184 4.246 4.310
5.101 5.204 5.309 5.416 5.526
3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473
4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993
5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742
2.402 2.322
3.717
4.580
4.452 4.329 | 4.212 4.100
3.993 3.890 3.791
Period 6
Period 7
Period 8
Period 9
Period 10
Period 6
Period 7
Period 8
Period 9
Period 10
5.795 5.601
6.728 | 6.472
7.652 7.325
8.566 8.162
5.417 5.242 5.076 4.917 4.767 |
4.111 3.889 3.784 3.685 3.498 3.326
4.039 | 3.812 3.605
6.152 6.308 6.468 6.633 6.802
7.214 7.434 7.662 7.898 8.142
8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44
9.369 9.755 10.16 10.58 11.03
10.46 10.95 11.46 12.01 | 12.58
7.153 7.336 7.523 7.716 8.115 8.536 8.754
8.654 8.923 9.200 9.487 10.09 | 10.73 11.07
| 12.30 13.23 13.73
11.98 12.49 13.02 13.58 | 14.78 16.09 16.79
13.82 14.49 15.19 15.94 17.55 19.34 20.30
4.623 4.486 4.355
5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288
6.975
8.394
6.230
6.002
4.160
7.020
6.733 6.463 6.210| 5.971
5.747 5.535 5.335 4.968 4.639 4.487
4.344 4.078 3.837
11.49
7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946
4.772 | 4.607 4.303
4.031
13.18
9.471 8.983
8.530
8.111
7.722 7.360 7.024
6.710 6.418 6.145 5.650 5.216| 5.019 4.833 4.494 4.192
8.760 5.938 5.453 5.234 5.029
Period 11
Period 12
Period 13
Period 14
Period 15
11.57 12.17 12.81 13.49 14.21
15.78 16.65 17.56| 18.53 20.65 23.04 24.35
16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00
13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35
14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50
16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58
Period 11
Period 12
Period 13
Period 14
Period 15
10.368 9.787 9.253
11.255 10.575 9.954
12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533
13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367
13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847
14.97
8.306 7.887 7.499
7.139 6.805 6.495
4.656 4.327
12.68 13.41 14.19 15.03 15.92
9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660
5.421 5.197
4.793 4.439
6.628 6.002
5.724 5.468
5.008 4.611
5.575
5.092 4.675
Period 16
Period 17
Period 18
Period 19
Period 20
17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72
18.43 20.01 21.76 23.70 25.84 28.21
19.61 21.41 23.41 25.65 28.13 30.91
20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21
22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4
Period 16
Period 17
Period 18
Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365| 7.366 6.550 6.198 5.877 5.316
Period 20
14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669
15.562 14.292 13.166 12.166 11.274 10.477 9.763
16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128
5.162 4.730
30.84 33.75 36.97 40.54 48.88 59.12 65.08
34.00 37.45 41.30 45.60 55.75 68.39 75.84
5.749 5.222 4.775
5.818 5.273 4.812
9.122 8.544 8.022
7.120 | 6.373
6.047
4.844
18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514
7.469 6.623 6.259 5.929 5.353 4.870
Period 21
Period 22
Period 23
Period 24
Period 25
23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8
24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6
25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3
26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 | 118.2 158.7 184.2
28.24 32.03 36.46 41.65 47.73
Period 21
6.312 5.973 5.384 4.891
6.011| 5.410 4.909
18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649
Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743
20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 | 7.718 6.792 6.399
Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434
22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464
7.562 6.687
6.359
Period 23
6.044 5.432 4.925
6.073
5.451 4.937
54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8
Period 25
6.097 5.467 4.948
29.53 33.67 38.55 44.31 51.11| 59.16
30.82 35.34 40.71 47.08 54.67
32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1
33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2
34.78 40.57 47.58 56.08 66.44 79.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7
68.68 79.95 93.32 109.2 | 150.3 208.3 245.7
63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6
Period 26
Period 27
Period 28
Period 29
Period 30
Period 26 7.896 6.906 6.491
Period 27
Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116| 9.307 7.984 6.961 6.534 6.152 5.502 4.970
Period 29 6.551 6.166 5.510 4.975
Period 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409
22.795 20.121| 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161
23.560 20.707| 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237
6.118
5.480 4.956
7.943 6.935
6.514
6.136
5.492 4.964
25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370
8.022 6.983
11.258 10.274 9.427 8.055 7.003 6.566
6.177 5.517 4.979
Period 40
48.89 60.40 75.40 95.03 120.8 154.8 |
199.6 259.1 337.9| 442.6 767.1 1,342| 1,779
Period 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.997
Period 50
64.46 84.58 112.8 152.7 209.3 290.3
406.5 573.8 815.1 1,164 2,400 4,995 7,218
Period 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661
6.246 5.554 4.999
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MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning