Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 9 years. He estimates the roof will cost him $10,100 at that time. What amount should Jim invest today at 8% compounded quarterly to be able to pay for the roof? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount to be invested
Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 9 years. He estimates the roof will cost him $10,100 at that time. What amount should Jim invest today at 8% compounded quarterly to be able to pay for the roof? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount to be invested
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
Related questions
Question
Transcribed Image Text:neducation.com/Media/Connect_Production/bne/Slater_13e/Presentvalue_decimal.jpg
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
Period
0.5%
1.0%
3.5%
4.0%
0.9615
5.0%
6.0%
6.5%
0.9390
0.8817
0.8278
0.7773
7.0%
0.9346
2.5%
7.5%
0.9302
0.8653
0.8050
1.5%
2.0%
3.0%
4.5%
5.5%
8.0%
0.9259
8.5%
0.9217
0.8495
0.7829
0.7216
9.0%
9.5%
10.0%
1
0.9950
0.9901
0.9852
0.9804
0.9756
0.9709
0.9662
0.9569
0.9524
0.9479
0.9434
0.9174
0.9132
0.9091
0.9070
0.8638
0.8227
21
0.9707
0.9335
0.9246
0.8985
0.8734
0.8417
0.7722
0.9901
0.9803
0.9612
0.9518
0.9426
0.9157
0.8900
0.8573
0.8340
0.8264
0.9851
0.9706
0.9286
0.9151
0.9019
0.8890
0.8763
0.8516
0.8396
0.8163
0.7938
0.7617
0.7513
0.9563
0.9422
0.9423
4
0.9802
0.9610
0.9238
0.9060
0.8885
0.8714
0.8548
0.8386
0.8072
0.7921
0.7629
0.7488
0.7350
0.7084
0.6956
0.6830
0.7835
0.6499
0.5963
0.5470
0.8420
0.8219
0.7130
0.6966
0.6650
0.6352
0.6209
0.8626
0.8375
0.9057
0.8839
0.8025
0.7651
0.7473
0.7299
0.6806
0.9515
0.9420
0.9754
0.9283
0.5801
0.5645
0.6302
0.5835
9.
0.9705
0.9145
0.8880
0.8623
0.8135
0.7903
0.7679
0.7462
0.7252
0.7050
0.6853
0.6663
0.6480
0.6129
0.6435
0.6042
0.8706
0.8413
0.8131
0.7860
0.7599
0.7348
0.7107
0.6874
0.6651
0.6227
0.6028
0.5649
0.5298
0.5132
0.9327
0.9235
0.9657
0.9010
0.6274
0.5607
0.5403
0.5207
0.5019
0.4838
0.4665
0.5820
0.5439
0.5083
8.
0.9609
0.8877
0.8535
0.8207
0.7894
0.7594
0.7307
0.7032
0.6768
0.6516
0.4799
0.4604
0.4418
0.4241
0.5674
0.5327
6.
0.9561
0.9143
0.8746
0.8368
0.8007
0.7664
0.7337
0.7026
0.6729
0.6446
0.6176
0.5919
0.5216
0.5002
0.3855
0.3505
0.3186
0.2897
0.2633
10
0.9513
0.9053
0.8617
0.8203
0.7812
0.7441
0.7089
0.6756
0.6439
0.6139
0.5854
0.5584
0.4852
0.4632
0.4423
0.4224
0.4035
0.3875
0.3555
11
0.9466
0.8963
0.8489
0.8043
0.7621
0.7224
0.6849
0.6496
0.6162
0.5847
0.5549
0.5268
0.5002
0.4751
0.4513
0.4289
0.4076
0.3685
0.3365
0.4440
0.4150
12
0.9419
0.8874
0.8364
0.7885
0.7436
0.7014
0.6618
0.6246
0.5897
0.5568
0.5260
0.4970
0.4697
0.4199
0.3971
0.3757
0.8787
0.8240
0.7730
0.7254
0.6810
0.6394
0.6006
0.5643
0.5303
0.4986
0.4688
0.4410
0.3906
0.3677
0.3463
0.3262
0.3073
13
0.9372
0.2807
0.3405
0.3152
0.2992
0.3878
0.3624
0.6611
0.6178
0.5775
0.5400
0.5051
0.4726
0.4423
0.4141
0.3633
0.3191
0.7579
0.7430
14
0.9326
0.8700
0.8118
0.7077
0.6905
0.6419
0.5969
0.5553
0.5167
0.4810
0.4479
0.4173
0.3888
0.3380
0.2941
0.2745
0.2563
0.2394
0.7999
0.7880
15
0.9279
0.8613
0.2919
0.2711
0.2519
0.2341
0.2176
0.7284
0.6736
0.6232
0.5767
0.5339
0.4945
0.4581
0.4246
0.3936
0.3651
0.3387
0.3144
16
0.9233
0.8528
0.2138
0.1952
0.1978
0.2499
0.2303
0.6572
0.6050
0.5572
0.5134
0.4732
0.4363
0.4024
0.3714
0.3428
0.3166
0.2925
0.2703
0.2311
17
0.9187
0.8444
0.7764
0.7142
0.1799
0.2120
0.1945
0.1784
0.1637
0.1502
0.2720
0.2531
0.6412
0.5874
0.5384
0.4936
0.4528
0.4155
0.3815
0.3503
0.3219
0.2959
0.2502
18
0.9141
0.8360
0.7649
0.7002
0.2317
0.2122
0.1783
0.1635
0.7536
0.6864
0.6255
0.5703
0.5202
0.4746
0.4333
0.3957
0.3616
0.3305
0.3022
0.2765
19
0.9096
0.8277
0.2584
0.2354
0.2145
0.1956
0.1628
0.1486
0.6730
0.6103
0.5537
0.5026
0.4564
0.4146
0.3769
0.3427
0.3118
0.2838
20
0.9051
0.8195
0.7425
0.1487
0.1351
0.1987
0,1839
0.1803
0.1662
0.1531
0.5375
0.4856
0.4388
0.3968
0.3589
0.3249
0.2942
0.2665
0.2415
0.2190
0.7315
0.6598
0.5954
0.1228
0.1358
0.1240
0.1133
0.9006
0.8114
21
22
0.5219
0.4692
0.4220
0.3797
0.3418
0.3079
0.2775
0.2502
0.2257
0.2037
0.6468
0.5809
0.1117
0.8034
0.7954
0.8961
0.7207
0.2618
0.2349
0.2109
0.1895
0.1703
0.1378
0.7100
0.6342
0.5667
0.5067
0.4533
0.4057
0.3634
0.3256
0.2919
0.1015
0.8916
0.1577
0.1412
0.1264
23
24
0.3901
0.3477
0.3101
0.2767
0.2470
0.2206
0.1971
0.1763
0.5529
0.4919
0.4380
0.0923
0.1160
0.1064
0.1034
0.0945
0.8872
0.7876
0.6995
0.6217
0.2071
0.1842
0.1640
0.1460
0.1301
0.4776
0.4231
0.3751
0.3327
0.2953
0.2622
0.2330
0.5394
0.5262
0.6095
0.0839
0.7798
0.7720
0.6892
0.1352
0.1252
25
0.8828
0.3184
0.2812
0.2486
0.2198
0.1945
0.1722
0.1525
0.1199
0.5976
0.4637
0.4088
0.3607
0.0976
0.0863
0.0763
0.1105
0.1019
26
0.8784
0.6790
0.2356
0.2074
0.1826
0.1609
0.1419
0.4502
0.3950
0.3468
0.3047
0.2678
0.0788
0.0693
0.0895
0.0822
27
0.8740
0.7644
0.6690
0.5859
0.5134
0.2233
0.1956
0.1715
0.1504
0.1320
0.1159
0.5009
0.4371
0.3817
0.3335
0.2916
0.2551
0.0719
0.0630
28
0.8697
0.7568
0.6591
0.5744
0.2429
0.2117
0.1846
0.1610
0.1406
0.1228
0.1073
0.0939
0.4243
0.3687
0.3207
0.2790
0.0657
0.0573
0.0865
0.0797
29
0.8653
0.7493
0.6494
0.5631
0.4887
0.2006
0.1741
0.1512
0.1314
0.1142
0.0994
0.0754
0.4767
0.4120
0.3563
0.3083
0.2670
0.2314
0.0691
0.0600
0.0521
0.1063
0.0988
0.6398
0.5521
0.0920
0.7419
0.7346
30
0.8610
0.1902
0.1643
0.1420
0.1228
0.2204
0.2099
0.4651
0.4000
0.3442
0.2965
0.2555
0.0852
0.0735
0.0634
0.0548
0.0474
0.6303
0.5412
0.1333
0.1147
0.8567
0.8525
0.8482
31
0.2851
0.2445
0.1803
0.1550
0.0500
0.0431
0.3883
0.3770
0.4538
0.3326
0.0789
0.0677
0.0582
0.1072
0.1002
32
0.7273
0.6210
0.5306
0.2340
0.1999
0.1709
0.1462
0.1252
0.0919
0.0391
0.6118
0.5202
0.4427
0.3213
0.2741
0.0855
0.0730
0.0624
0.0534
0.0457
33
0.7201
0.2636
0.2239
0.1904
0.1620
0.1379
0.1175
0.0417
0.0356
0.4319
0.3660
0.3105
0.0796
0.0676
0.0575
0.0490
0.0937
0.0875
0.0818
0.5100
0.1103
0.1301
0.1227
0.1158
0.1092
0.1031
0.0972
0.0917
0.0865
34
0.8440
0.7130
0.6028
0.1813
0.1535
0.0323
0.0294
0.2143
0.0381
0.3000
0.2898
0.2800
0.2706
0.2614
0.2526
0.2440
0.5939
0.5000
0.4214
0.3554
0.2534
0.1036
0.0740
0.0626
0.0530
0.0449
0.8398
0.7059
0.1455
0.1727
0.1644
35
0.2437
0.2050
0.0489
0.0412
0.0348
0.3450
0.3350
0.5851
0.4902
0.4111
0.0973
0.0688
0.0580
0.8356
0.8315
0.8274
0.8232
36
0.6989
0.2343
0.1962
0.1379
0.0450
0.0378
0.0318
0.0267
0.5764
0.4806
0.4011
0.0914
0.0765
0.0640
0.0537
0.1307
0.1239
0.1175
0.1113
0.1055
0.1000
0.0948
0.0899
0.0852
0.0807
0.0765
0.0725
0.0688
0.6920
0.1566
0.1491
0.1420
37
0.1878
0.0347
0.0290
0.0243
0.2253
0.2166
0.2083
0.2003
0.1926
0.1852
0.1780
0.1712
0.1646
0.1583
0.1522
0.1463
0.3913
0.3252
0.0596
0.0497
0.0415
0.0858
0.0805
0.5679
0.4712
0.0715
0.0221
0.0201
38
0.6852
0.1797
0.0383
0.0318
0.0265
0.4619
0.3817
0.3158
0.0668
0.0554
0.0460
0.6784
0.6717
0.6650
0.6584
0.6519
0.6454
0.5595
0.5513
0.5431
0.5351
0.5272
0.1719
0.1645
0.1574
0.0242
0.0292
0.0268
39
0.0353
0.0325
0.4529
0.3724
0.3066
0.0756
0.0624
0.0516
0.0426
0.0183
40
0.8191
0.1353
0.0221
0.0395
0.0365
0.0338
0.0480
0.2976
0.2890
0.0583
0.4440
0.4353
0.3633
0.0710
0.0166
0.1288
0.1227
0.1169
0.1113
0.1060
0.1009
0.0961
0.0916
0.0872
41
0.8151
0.0300
0.0246
0.0202
0.3545
0.2358
0.0816
0.0667
0.0545
0.0446
0.0151
0.8110
0.0226
0.0184
0.1507
0.1442
0.1380
0.1320
0.1263
0.1209
0.1157
0.1107
42
0.0276
0.2278
0.2201
0.2127
0.2055
0.1985
0.2805
0.0509
0.0415
0.4268
0.4184
0.4102
0.3458
0.3374
0.0168 0.0137
0.0154 0.0125
0.0113
0.0770
0.0626
0.0207
43
0.8070
0.0313
0.0254
0.0386
0.0359
0.0334
0.0311
0.0289
0.0269
0.2724
0.0588
0.0476
0.5194
0.5117
0.5042
0.4967
0.0727
0.0190
0.0174
44
0.8030
0.0290
0.0235
0.2644
0.0445
0.3292
0.3211
0.3133
0.3057
0.2982
0.2909
0.0685
0.0647
0.0610
0.0575
0.0552
0.0140
45
0.7990
0.6391
0.0269
0.0216
0.2567
0.2493
0.2420
0.2350
0.2281
0.0518
0.0416
0.0103
0.4022
0.3943
46
0.7950
0.6327
0.0249
0.0199
0.0160
0.0128
0.0389
0.0363
0.0487
0.0147
0.0117
0.0094
47
0.7910
0.6265
0.1918
0.0230
0.0184
0.0457
0.0085
0.3865
0.3790
0.4894
0.0134
0.0107
0.6203
0.6141
48
0.7871
0.1853
0.0339
0.0213
0.0169
0.4821
0.0543
0.0429
49
0.7832
0.1791
0.1407
0.6080
0.4750
0.3715
50
0.7793
Transcribed Image Text:turevalue_decin X
ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser%3D0&launchUrl%=https%253A%252F%252Fblackboard.waketech.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253F
Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 9 years. He estimates the roof will
cost him $10,100 at that time.
What amount should Jim invest today at 8% compounded quarterly to be able to pay for the roof? (Use the Table provided.) (Do not
round intermediate calculations. Round your answer to the nearest cent.)
Amount to be invested
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