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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?

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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