Lee Holmes deposited $15,400 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,400 at 9% interest compounded semiannually. At the end of 6 years, what is the balance in Lee's account? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Balance
Lee Holmes deposited $15,400 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,400 at 9% interest compounded semiannually. At the end of 6 years, what is the balance in Lee's account? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Balance
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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Transcribed Image Text:Lee Holmes deposited $15,400 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee
deposits an additional $40,400 at 9% interest compounded semiannually.
At the end of 6 years, what is the balance in Lee's account? (Use the Table provided.)
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Balance
Transcribed Image Text:Future value interest factor of $1 per period at i% for n periods, FVIF(i,n).
Period 0.5% 1.0%
1
2
3
1.0151 1.0303
4
1.0202 1.0406
5
1.0253 1.0510
6
7
8
9
1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5%
1.0050 1.0100 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750
1.0100 1.0201
1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556
1.0457 1.0612 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 1.2079 1.2250 1.2423
1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355
1.0773 1.1041 1.1314 1.1593 1.1877 1.2167 1.2462 1.2763 1.3070 1.3382 1.3701 1.4026 1.4356
1.0304 1.0615 1.0934 1.1262 1.1597 1.1941 1.2293 1.2653 1.3023 1.3401 1.3788 1.4185 1.4591
1.5007 1.5433
1.0355 1.0721 1.1098 1.1487 1.1887 1.2299 1.2723 1.3159 1.3609 1.4071 1.4547 1.5036 1.5540 1.6058 1.6590
1.0407 1.0829 1.1265 1.1717 1.2184 1.2668 1.3168 1.3686 1.4221 1.4775 1.5347 1.5938 1.6550 1.7182 1.7835
1.0459 1.0937 1.1434 1.1951 1.2489 1.3048 1.3629 1.4233 1.4861 1.5513 1.6191 1.6895 1.7626 1.8385 1.9172
1.0511 1.1046 1.1605 1.2190 1.2801 1.3439 1.4106 1.4802 1.5530 1.6289 1.7081 1.7908 1.8771 1.9672 2.0610
1.0564 1.1157 1.1779 1.2434 1.3121 1.3842 1.4600 1.5395 1.6229 1.7103 1.8021 1.8983 1.9992 2.1049 2.2156
1.0617 1.1268 1.1956 1.2682 1.3449 1.4258 1.5111 1.6010 1.6959 1.7959 1.9012 2.0122 2.1291 2.2522 2.3818
1.1381 1.2136 1.2936 1.3785 1.4685 1.5640 1.6651 1.7722 1.8856 2.0058 2.1329 2.2675 2.4098 2.5604
1.1495 1.2318 1.3195 1.4130 1.5126 1.6187
1.7317 1.8519 1.9799 2.1161
2.2609 2.4149 2.5785 2.7524
1.0777 1.1610 1.2502 1.3459 1.4483 1.5580 1.6753 1.8009
2.0789 2.2325 2.3966 2.5718 2.7590 2.9589
1.0831 1.1726 1.2690 1.3728 1.4845 1.6047 1.7340 1.8730
2.1829 2.3553 2.5404 2.7390 2.9522 3.1808
1.0885 1.1843 1.2880 1.4002 1.5216 1.6528 1.7947 1.9479 2.1134 2.2920 2.4848 2.6928 2.9170 3.1588 3.4194
1.0939 1.1961
1.3073
1.4282 1.5597 1.7024 1.8575 2.0258
2.2085 2.4066 2.6215 2.8543
1.0994 1.2081 1.3270 1.4568 1.5987 1.7535 1.9225 2.1068 2.3079 2.5270 2.7656 3.0256
1.4859 1.6386 1.8061 1.9898 2.1911 2.4117 2.6533 2.9178 3.2071
1.0670
1.0723
1.9353
2.0224
3.1067 3.3799 3.6758
3.3086 3.6165 3.9515
3.5236 3.8697 4.2479
1.1049 1.2202 1.3469
10
11
12
13
14
15
16
17
18
19
20
8.0%
8.5%
1.0800 1.0850
1.1664 1.1772
1.25.97 1.2773
1.3605 1.3859
1.4693 1.5037
1.5869 1.6315
1.7138 1.7701
1.85.09 1.9206
1.9990
2.1589
2.0839
2.2610
2.3316
2.4532
2.5182
2.6617
2.7196
2.8879
2.9372
3.1334
3.1T22 3.3997
3.6887
4.0023
4.3425
4.7116
5.1120
3.42:59
3.7000
3.9960
4.3157
4.6610
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