Analysts at Sky West Airlines did a 3 year projection of expenses. They calculated that the company will need $15,700 at the beginning of each 6 month period to buy fuel, oil, lube, and parts for aircraft operations and maintenance. Sky West can get 8% interest compounded semiannually from its bank. How much (in $) should Sky West deposit now to support the next 3 years of operations and maintenance expenses? (Round your answer to the nearest cent.) table 12-2:
Analysts at Sky West Airlines did a 3 year projection of expenses. They calculated that the company will need $15,700 at the beginning of each 6 month period to buy fuel, oil, lube, and parts for aircraft operations and maintenance. Sky West can get 8% interest compounded semiannually from its bank. How much (in $) should Sky West deposit now to support the next 3 years of operations and maintenance expenses? (Round your answer to the nearest cent.) table 12-2:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Analysts at Sky West Airlines did a 3 year projection of expenses. They calculated that the company will need $15,700 at the beginning of each 6 month period to buy fuel, oil, lube, and parts for aircraft operations and maintenance. Sky West can get 8% interest compounded semiannually from its bank. How much (in $) should Sky West deposit now to support the next 3 years of operations and maintenance expenses? (Round your answer to the nearest cent.)
table 12-2:
Transcribed Image Text:TABLE 12-2 Present Value (Amount) of an Ordinary Annuity of $1
Periods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
1%
2
1%
11/% 2%
6%
8% Periods
1
0.99502 0.99010
1.98510 1.97040
2
3%
4%
5%
7%
0.98522 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593
1.95588 1.94156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326
2.91220 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710
3.95050 3.90197 3.85438 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213
4.92587 4.85343 4.78264 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271
2.97025 2.94099
3
4
5
6.47199
5.69719
6.59821
7.48593
8.36052 8.16224
8.98259
5.60143 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288
6.23028 6.00205 5.78637 5.58238 5.38929 5.20637
7.01969 6.73274 6.46321 6.20979 5.97130 5.74664
7.78611 7.43533 7.10782 6.80169 6.51523 6.24689
8.53020 8.11090 7.72173 7.36009 7.02358 6.71008
7.32548
5.89638 5.79548
6.86207 6.72819
7.82296 7.65168
8.77906 8.56602
9.73041 9.47130 9.22218
6
7
8
9
10
11
10.67703 10.36763 10.07112 9.78685 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896
11.61893 11.25508 10.90751 10.57534 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 12
12.55615 12.13374 11.73153 11.34837 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 13
13.48871 13.00370 12.54338 12.10625 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 14
14.41662 13.86505 13.34323 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948
15
16
15.33993 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137
16.25863 15.56225 14.90765 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 17
17.17277 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 18
18.08236 17.22601 16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 19
18.98742 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 20
19.88798 18.85698 17.90014 17.01121 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 21
20.78406 19.66038 18.62082 17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 22
21.67568 20.45582 19.33086 18.29220 16.44361 14.85684 13.48857 12.30338 11.27219 10.37106 23
22.56287 21.24339 20.03041 18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 24
23.44564 22.02316 20.71961 19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 25
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