Jazelle Momba wants to visit her family in Zimbabwe in 2025, which is 7 years from now. She knows that it will cost approximately $8,100 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that compounds interest at 6% semiannually, how much does she need to deposit today to cover the total cost of her visit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Jazelle Momba wants to visit her family in Zimbabwe in 2025, which is 7 years from now. She knows that it will cost approximately $8,100 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that compounds interest at 6% semiannually, how much does she need to deposit today to cover the total cost of her visit?

TABLE
Prosent value of $1 at end of poriod
Perlod
1%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
1.
9901
9852
9804
9709
9615
9524
9434
9346
9259
9174
9091
9803
9707
9612
9426
9246
9070
8900
8734
8573
8417
8264
3
9706
9563
9423
9151
8890
8638
8396
8163
7938
7722
7513
9610
9422
9238
B885
8548
8227
7921
7629
7350
7084
6830
9515
9283
9057
8626
8219
7835
7473
7130
6806
6499
6209
9420
9145
8880
8375
7903
7462
7050
6663
6302
5963
5645
7.
9327
9010
8706
8131
7599
7107
6651
6227
5835
5470
5132
9235
8877
8535
7894
7307
6768
6274
5820
5403
50 19
4665
9143
8746
8368
7664
7026
6446
.5919
5439
5002
4604
4241
10
9053
8617
8203
7441
6756
6139
5584
5083
4632
A224
3855
11
8963
8489
8043
7224
6496
5847
5268
4751
4289
3875
3505
12
8874
8364
7885
7014
6246
5568
4970
4440
3971
3555
3186
13
8787
8240
7730
6810
6006
5303
4688
4150
3677
3262
2897
14
8700
8119
7579
6611
5775
5051
4423
3878
3405
2992
2633
15
8613
7999
7430
6419
5553
4810
4173
3624
3152
2745
2394
16
8528
7880
7284
6232
5339
4581
3936
3387
2919
2519
2176
17
8444
7764
7142
6050
5134
4363
3714
3166
2703
2311
1978
18
8360
7649
7002
5874
4936
4155
3503
2959
2502
2120
1799
19
8277
7536
6864
5703
4746
3957
3305
2765
2317
1945
1635
20
8195
7425
6730
5537
4564
3769
3118
2584
2145
1784
1486
21
8114
7315
6598
5375
4388
3589
2942
2415
1987
1637
1351
22
8034
7207
6468
5219
4220
3418
2775
2257
1839
1502
1228
23
7954
7100
6342
5067
4057
3256
2618
2109
1703
1378
24
7876
6995
6217
4919
3901
3101
2470
1971
1577
1264
1015
25
7798
6892
6095
4776
3751
2953
2330
1842
1460
.1160
0923
26
7720
6790
5976
4637
3607
2812
2198
1722
1352
1064
0839
27
7644
6690
5859
4502
3468
2678
2074
1609
1252
0976
0763
28
7568
6591
5744
4371
3335
2551
1956
1504
.1159
0895
0693
29
7493
6494
5631
4243
3207
2429
1846
1406
1073
0822
0630
30
7419
6398
5521
.4120
3083
2314
1741
1314
0994
0754
0573
35
7059
5939
5000
3554
2534
1813
1301
0937
.0676
0490
0356
40
6717
5513
4529
3066
2083
1420
0972
0668
.0460
0318
0221
Note: For more detaled tables, see your booklet the Business Moth Handbook
Transcribed Image Text:TABLE Prosent value of $1 at end of poriod Perlod 1% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1. 9901 9852 9804 9709 9615 9524 9434 9346 9259 9174 9091 9803 9707 9612 9426 9246 9070 8900 8734 8573 8417 8264 3 9706 9563 9423 9151 8890 8638 8396 8163 7938 7722 7513 9610 9422 9238 B885 8548 8227 7921 7629 7350 7084 6830 9515 9283 9057 8626 8219 7835 7473 7130 6806 6499 6209 9420 9145 8880 8375 7903 7462 7050 6663 6302 5963 5645 7. 9327 9010 8706 8131 7599 7107 6651 6227 5835 5470 5132 9235 8877 8535 7894 7307 6768 6274 5820 5403 50 19 4665 9143 8746 8368 7664 7026 6446 .5919 5439 5002 4604 4241 10 9053 8617 8203 7441 6756 6139 5584 5083 4632 A224 3855 11 8963 8489 8043 7224 6496 5847 5268 4751 4289 3875 3505 12 8874 8364 7885 7014 6246 5568 4970 4440 3971 3555 3186 13 8787 8240 7730 6810 6006 5303 4688 4150 3677 3262 2897 14 8700 8119 7579 6611 5775 5051 4423 3878 3405 2992 2633 15 8613 7999 7430 6419 5553 4810 4173 3624 3152 2745 2394 16 8528 7880 7284 6232 5339 4581 3936 3387 2919 2519 2176 17 8444 7764 7142 6050 5134 4363 3714 3166 2703 2311 1978 18 8360 7649 7002 5874 4936 4155 3503 2959 2502 2120 1799 19 8277 7536 6864 5703 4746 3957 3305 2765 2317 1945 1635 20 8195 7425 6730 5537 4564 3769 3118 2584 2145 1784 1486 21 8114 7315 6598 5375 4388 3589 2942 2415 1987 1637 1351 22 8034 7207 6468 5219 4220 3418 2775 2257 1839 1502 1228 23 7954 7100 6342 5067 4057 3256 2618 2109 1703 1378 24 7876 6995 6217 4919 3901 3101 2470 1971 1577 1264 1015 25 7798 6892 6095 4776 3751 2953 2330 1842 1460 .1160 0923 26 7720 6790 5976 4637 3607 2812 2198 1722 1352 1064 0839 27 7644 6690 5859 4502 3468 2678 2074 1609 1252 0976 0763 28 7568 6591 5744 4371 3335 2551 1956 1504 .1159 0895 0693 29 7493 6494 5631 4243 3207 2429 1846 1406 1073 0822 0630 30 7419 6398 5521 .4120 3083 2314 1741 1314 0994 0754 0573 35 7059 5939 5000 3554 2534 1813 1301 0937 .0676 0490 0356 40 6717 5513 4529 3066 2083 1420 0972 0668 .0460 0318 0221 Note: For more detaled tables, see your booklet the Business Moth Handbook
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