Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find the additional amount earned if she invests for 7 years instead of 4 years.
Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find the additional amount earned if she invests for 7 years instead of 4 years.
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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Question
Transcribed Image Text:Future Value or Compound Amount of $1.00
Rate per period
Periods 0.50% 1.00% 1.50% 2.00% 2.50% 3.0096 4.00% 5.00% 6.00%
8.0096
10.0096
1
1.00500 1.01000 1.01500 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.08000 1.10000
2
1.01003 1.02010 1.03023 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.16640 121000
3
1.01508 1.03030 1.04568 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 1.25971 133100
4
1.02015 1.04060 1.06136 1.08243 1.10381 1.12551 1.16986 1.21551 1.26248 1.36049 1.46410
5
1.02525 1.05101 1.07728 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 1.46933
1.61051
6
1.03038 1.06152 1.09344 1.12616 1.15969 1.19405 1.26532 134010 1.41852 1.58687
1.77156
7
1.03553 1.07214 1.10984 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 1.71382
1.94872
1.04071 1.08286 1.12649 1.17166 1.21840 1.26677 1.36857 1.47746 1.59385 1.85093
2.14359
235795
1.05114 1.10462 1.16054 1.21899 1.28008 134392 1.48024 1.62889 1.79085 2.15892 259374
2.85312
3.13843
9
1.04591 1.09369 1.14339 1.19509 1.24886 130477 1.42331 1.55133 1.68948 1.99900
10
11
1.05640 1.11567 1.17795 1.24337 1.31209 138423 1.53945 1.71034 1.89830 2.33164
12
1.06168 1.12683 1.19562 1.26824 1.34489 1.42576 1.60103 1.79586 2.01220 2.51817
13
1.06699 1.13809 1.21355 1.29361 1.37851 1.46853 1.66507 1.88565 2.13293 2.71962 3.45227
14
1.07232 1.14947 1.23176 131948 1.41297 151259 1.73168 197993 2.26090 2.93719
15
1.07768 1.16097 1.25023 134587 1.44830 1.55797 1.80094 2.07893 2.39656 3.17217 4.17725
16
1.08307 1.17258 1.26899 137279 1.48451 1.60471 1.87298 2.18287 2.54035 3.42594 4.59497
17
1.08849 1.18430 1.28802 1.40024 1.52162 1.65285 1.94790 2.29202 2.69277 3.70002 5.05447
Transcribed Image Text:Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find the additional amount earned if she invests for 7 years instead
of 4 years.
Expert Solution
Step 1
FV = PV (1 + r)t
where,
FV = Future Value
PV = Present Value
r = Rate of Interest
t = Years to Maturity
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