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Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is :  (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)

Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is :  (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)

Essentials Of Investments
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
Problem 1PS
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Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is :  (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)

 
Future value of $1 at compound interest Perlod 1% 14% 2% 3% 4% 5% 6% 7% 8% 10% %6 10100 10150 1.0200 10300 1.0400 1.0500 10600 10700 10800 1.0900 11000 2 10201 1.0302 10404 10609 1.0816 11025 11236 13449 11664 11881 1.2100 3. 1.0303 1.0457 1.0612 1.0927 11249 11576 11910 1.2250 12597 1.2950 13310 4. 10406 1.0614 1.0824 11255 1.1699 1.2155 12625 1.3108 13605 1.4116 1.4641 1.0510 1.0773 1.1041 11593 1.2167 1.2763 13382 1.4026 1.4693 1.5386 16105 6. 1.0615 1.0934 11262 1.1941 1.2653 13401 14185 1.5007 15869 1.6771 17716 7. 1.0721 1.1098 1.1487 12299 1.3159 14071 15036 16058 17138 1.8280 1.9487 1.0829 1.1265 11717 1.2668 1.3686 14775 15938 17182 18509 1.9926 21436 1.0937 1.1434 11951 13048 1.4233 15513 16895 1.8385 19990 21719 2.3579 10 13046 1.1605 1.2190 13439 1.4802 16289 17908 19672 2.1589 2.3674 2.5937 11 1.1157 1.1780 1.2434 13842 15395 17103 18983 21049 2.3316 2.5804 2.8531 12 1.1268 1.1960 1.2682 14258 1.6010 17959 2.0122 2.2522 2.5182 2.8127 3.1384 13 11381 1.2135 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 14 1.1495 1.2318 1.3195 15126 17317 1.9799 2.2609 2.5785 2.9372 3.3417 37975 15 1.1610 1.2502 1.3459 15580 1.8009 20789 2.3966 27590 3.1722 3.6425 41772 16 1.1726 1.2690 1.3728 16047 1.8730 21829 2.5404 2.9522 3.4259 3.9703 4.5950 17 1.1843 1.2880 1.4002 16528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 18 1.1961 1.3073 1.4282 17024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 19 1.2081 1.3270 1.4568 17535 21068 25270 3.0256 3.6165 4.3157 5.1417 61159 20 1.2202 1.3469 1.4859 18061 21911 26533 3.2071 3.8697 4.6610 5.6044 67275 21 1.2324 1.3671 1.5157 1.8603 2.2788 27860 3.3996 43406 5.0338 6.1088 7.4002 22 1.2447 1.3876 15460 19161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 81403 23 1.2572 1,4084 15769 19736 2.4647 3.0715 3.8197 47405 5.8715 7.2579 8.9543 24 1.2697 1.4295 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.911 9.8497 25 1.2824 14510 16406 20938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 26 1.2953 1,4727 1.6734 21566 2.7725 3.5557 4.5494 5.8074 73964 9.3992 11.9182 27 1.3082 1,4948 17069 22213 2.8834 37335 4.8223 6.2139 79881 10.2451 131100 28 13213 1.5172 17410 2.2879 2.9987 3.9201 5.117 6.6488 86271 11.1672 14.4210 29 1.3345 1.5400 17758 23566 3.1187 4.1161 5.4184 71143 9.3173 12.1722 15.8631 30 1.3478 1.5631 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 174494 Note: For more detailed tables, see your reference booklet, the Business Math Handbook.
Transcribed Image Text:Future value of $1 at compound interest Perlod 1% 14% 2% 3% 4% 5% 6% 7% 8% 10% %6 10100 10150 1.0200 10300 1.0400 1.0500 10600 10700 10800 1.0900 11000 2 10201 1.0302 10404 10609 1.0816 11025 11236 13449 11664 11881 1.2100 3. 1.0303 1.0457 1.0612 1.0927 11249 11576 11910 1.2250 12597 1.2950 13310 4. 10406 1.0614 1.0824 11255 1.1699 1.2155 12625 1.3108 13605 1.4116 1.4641 1.0510 1.0773 1.1041 11593 1.2167 1.2763 13382 1.4026 1.4693 1.5386 16105 6. 1.0615 1.0934 11262 1.1941 1.2653 13401 14185 1.5007 15869 1.6771 17716 7. 1.0721 1.1098 1.1487 12299 1.3159 14071 15036 16058 17138 1.8280 1.9487 1.0829 1.1265 11717 1.2668 1.3686 14775 15938 17182 18509 1.9926 21436 1.0937 1.1434 11951 13048 1.4233 15513 16895 1.8385 19990 21719 2.3579 10 13046 1.1605 1.2190 13439 1.4802 16289 17908 19672 2.1589 2.3674 2.5937 11 1.1157 1.1780 1.2434 13842 15395 17103 18983 21049 2.3316 2.5804 2.8531 12 1.1268 1.1960 1.2682 14258 1.6010 17959 2.0122 2.2522 2.5182 2.8127 3.1384 13 11381 1.2135 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 14 1.1495 1.2318 1.3195 15126 17317 1.9799 2.2609 2.5785 2.9372 3.3417 37975 15 1.1610 1.2502 1.3459 15580 1.8009 20789 2.3966 27590 3.1722 3.6425 41772 16 1.1726 1.2690 1.3728 16047 1.8730 21829 2.5404 2.9522 3.4259 3.9703 4.5950 17 1.1843 1.2880 1.4002 16528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 18 1.1961 1.3073 1.4282 17024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 19 1.2081 1.3270 1.4568 17535 21068 25270 3.0256 3.6165 4.3157 5.1417 61159 20 1.2202 1.3469 1.4859 18061 21911 26533 3.2071 3.8697 4.6610 5.6044 67275 21 1.2324 1.3671 1.5157 1.8603 2.2788 27860 3.3996 43406 5.0338 6.1088 7.4002 22 1.2447 1.3876 15460 19161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 81403 23 1.2572 1,4084 15769 19736 2.4647 3.0715 3.8197 47405 5.8715 7.2579 8.9543 24 1.2697 1.4295 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.911 9.8497 25 1.2824 14510 16406 20938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 26 1.2953 1,4727 1.6734 21566 2.7725 3.5557 4.5494 5.8074 73964 9.3992 11.9182 27 1.3082 1,4948 17069 22213 2.8834 37335 4.8223 6.2139 79881 10.2451 131100 28 13213 1.5172 17410 2.2879 2.9987 3.9201 5.117 6.6488 86271 11.1672 14.4210 29 1.3345 1.5400 17758 23566 3.1187 4.1161 5.4184 71143 9.3173 12.1722 15.8631 30 1.3478 1.5631 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 174494 Note: For more detailed tables, see your reference booklet, the Business Math Handbook.
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