MY NOTES ASK YOUR TEACHER Solve by using tables Table 12-1 and Table 12-2. Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $6,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment (in $) will allow them to achieve their vacation goal? (Round your answer to the nearest cent.)
MY NOTES ASK YOUR TEACHER Solve by using tables Table 12-1 and Table 12-2. Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $6,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment (in $) will allow them to achieve their vacation goal? (Round your answer to the nearest cent.)
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:MY NOTES
ASK YOUR TEACHER
Solve by using tables Table 12-1 and Table 12-2.
Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $6,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make
regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment (in $) will allow them to achieve their vacation
goal? (Round your answer to the nearest cent.)
%24
Transcribed Image Text:TABLE 12-2 Present Value (Amount) of an Ordinary Annuity of $1
Periods
1%
3%
4%
5%
6%
7%
8%
Periods
0.99502 0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
1.98510 1.97040
1.95588
1.94156
1.91347
1.88609
1.85941
1.83339
1.80802
1.78326
3
2.97025 2.94099
2.91220
2.88388
2.82861
2.77509
2.72325
2.67301
2.62432
2.57710
3
4
3.95050 3.90197
3.85438
3.80773
3.71710
3.62990
3.54595
3.46511
3.38721
3.31213
4
4.92587 4.85343
4.78264
4.71346
4.57971
4.45182
4.32948
4.21236
4.10020 3.99271
5.89638 5.79548
5.69719
5.60143
5.41719
5.24214
5.07569
4.91732
4.76654
4.62288
6.
6.86207 6.72819
6.59821
6.47199
6.23028
6.00205
5.78637
5.58238
5.38929
5.20637
7
8.
7.82296 7.65168
7.48593
7.32548
7.01969
6.73274
6.46321
6.20979
5.97130 5.74664
8.
9.
8.77906 8.56602
8.36052
8.16224
7.78611
7.43533
7.10782
6.80169
6.51523
6.24689
10
9.73041
9.47130
9.22218
8.98259
8.53020
8.11090
7.72173
7.36009
7.02358
6.71008
10
10.67703 10.36763 10.07112
9.78685
9.25262
8.76048
8.30641
7.88687
7.49867
7.13896
11
12
11.61893 11.25508 10.90751
10.57534
9.95400
9.38507
8.86325
8.38384
7.94269
7.53608
12
13
12.55615 12.13374 11.73153 11.34837 10.63496
9.98565
9.39357
8.85268
8.35765
7.90378
13
14
13.48871 13.00370 12.54338
12.10625 11.29607 10.56312
9.89864
9.29498
8.74547 8.24424
14
15
14.41662 13.86505 13.34323
12.84926 11.93794 11.11839 10.37966
9.71225
9.10791
8.55948
15
16
15.33993 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590
9.44665
8.85137
16
17
16.25863 15.56225 14.90765 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322
9.12164
17
18
17.17277 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189
18
19
18.08236 17.22601
16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360
19
20
18.98742 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401
9.81815
20
21
19.88798 18.85698 17.90014 17.01121 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680
21
22
20.78406 19.66038 18.62082
17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074
22
23
21.67568 20.45582 19.33086 18.29220 16.44361 14.85684 13.48857 12.30338 11.27219 10.37106
23
24
22.56287 21.24339 20.03041
18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876
24
25
23.44564 22.02316 20.71961
19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478
25
26
24.32402 22.79520 21.39863 20.12104 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998
26
27
25.19803 23.55961 22.06762 20.70690 18.32703 16.32959 14.64303 13.21053 11.98671 10.93516
27
28
26.06769 24.31644 22.72672 21.28127 18.76411
16.66306 14.89813 13.40616 12.13711 11.05108
28
29
26.93302 25.06579 23.376008 21.84438 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841
29
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