Nancy Cardoza (hypothetical person) invested $4,300 in ExxonMobil stock because her research indicated the stock should earn an average return of 9 percent for the investors over the next five years. If ExxonMobil investors do earn 9 percent each year, what will her $4,300 investment be worth at the end of five years?
Nancy Cardoza (hypothetical person) invested $4,300 in ExxonMobil stock because her research indicated the stock should earn an average return of 9 percent for the investors over the next five years. If ExxonMobil investors do earn 9 percent each year, what will her $4,300 investment be worth at the end of five 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
Related questions
Question
Nancy Cardoza (hypothetical person) invested $4,300 in ExxonMobil stock because her research indicated the stock should earn an average return of 9 percent for the investors over the next five years. If ExxonMobil investors do earn 9 percent each year, what will her $4,300 investment be worth at the end of five years?
Note: I am not sure which table we should use for this problem or how to round the time value factor to 3 decimal places and final answer to 2 decimal places.
Transcribed Image Text:Exhibit 1-A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods
1%
1.010
1.020
1.030
1.041
1.051
1.062
1.072
1.083
1.094
Period
1
2
3
4
5
6
|7|8|9|1004
11
12
13
15
16
17
18
19
20
25
30
40
50
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
25
30
40
50
1.105
1.116
1.127
1.138
1.149
1.161
1.173
1.184
1.196
1.208
1.220
1.282
1.348
1.489
1.645
12%
1.120
1.254
1.405
1.574
1.762
1.974
2.211
2.476
2.773
3.106
3.479
3.896
4.363
4.887
5.474
6.130
6.866
7.690
8.613
9.646
17.000
29.960
93.051
289.002
2%
1.020
1.040
1.061
1.082
1.104
1.126
1.149
1.172
1.195
1.219
1.243
1.268
1.294
1.319
1.346
1.373
1.400
1.428
1.457
1.486
1.641
1.811
2.208
2.692
3%
1.030
1.061
1.093
1.126
1.159
1.194
1.230
1.267
1.305
1.344
1.384
1.426
1.469
1.513
1.558
1.605
1.653
1.702
1.754
1.806
2.094
Inolol o
13%
1.130
1.277
ml
2.427
1.443
1.630
1.842
2.082
2.353
2.658
3.004
3.395
3.836
4.335
4.898
5.535
6.254
7.067
7.986
alalalala
3.262
9.024
10.197
11.523
21.231
39.116
132.782
450.736
01.
4.384
4%
1.040
1.082
1.125
1.170
1.217
1.265
1.316
1.369
1.423
1.480
1.539
1.601
1.665
1.732
1.801
1.873
1.948
2.026
2.107
2.191
2.666
3.243
4.801
7.107
14%
1.140
1.300
1.482
1.689
1.925
2.195
2.502
2.853
3.252
3.707
4.226
5%
1.050
1.103
1.158
1.216
1.276
1.340
1.407
1.477
1.551
1.629
1.710
1.796
1.886
1.980
2.079
2.183
2.292
2.407
15%
1.150
1.323
1.521
1.749
2.011
2.540
2.693
2.854
2.527
3.026
2.653
3.207
3.386
4.292
4.322
5.743
7.040 10.286
11.467
18.420
2.313
2.660
3.059
3.518
4.046
4.652
5.350
6.153
7.076
8.137
9.358
10.761
12.375
14.232
16.367
32.919
66.212
267.864
4.818
5.492
6.261
7.138
8.137
9.276
10.575
12.056
13.743
26.462
50.950
188.884
700.233 1,083.657
6%
1.060
1.124
M,
•
1.191
1.262
1.338
1.419
1.504
1.594
1.689
1.791
1.898
2.012
2.133
2.261
2.397
16%
-
A
1.160
1.346
7%
1.070
1.145
1.225
1.311
1.403
1.501
1.606
1.718
1.838
1.967
2.105
2.252
2.410
2.579
2.937
2.759
3.172
2.952
3.426
3.159
3.700
3.380
3.996
3.617
4.316
3.870
4.661
6.848
5.427
7.612 10.063
14.974 21.725
29.457
46.902
17%
1.170
1.369
1.602
1.874
2.192
2.565
3.001
3.511
4.108
4.807
5.624
6.580
7.699
9.007
8%
1.080
1.166
1.260
1.360
1.469
1.587
1.714
1.851
1.999
2.159
2.332
2.518
2.720
1.561
1.811
2.100
2.436
2.826
3.278
3.803
4.411
5.117
5.936
6.886
7.988
9.266
10.539
10.748
12.330
12.468
14.426
14.463
16.879
16.777
19.748
19.461
23.106
40.874
50.658
85.850
111.065
378.721 533.869
1,670.704 2,566.215
-..-..-..-..
18%
9%
1.090
1.188
1.295
1.412
1.539
1.677
1.828
1.993
2.172
2.367
2.580
1.180
1.392
1.643
1.939
2.288
2.700
3.185
3.759
4.435
5.234
6.176
7.288
8.599
10.147
11.974
14.129
16.672
19.673
23.214
27.393
62.669
2.813
3.066
3.342
3.642
3.970
4.328
10%
1.100
1.210
1.331
1.464
1.611
1.772
1.949
2.144
2.358
2.594
2.853
3.138
3.452
3.797
4.177
4.595
5.054
5.560
6.116
6.727
10.835
17.449
45.259
4.717
5.142
5.604
8.623
13.268
31.409
74.358 117.391
19%
1.190
1.416
1.685
2.005
2.386
2.840
3.379
4.021
4.785
5.695
6.777
8.064
9.596
11.420
13.590
16.172
19.244
22.901
27.252
32.429
77.388
184.675
11%
1.110
1.232
1.368
1.518
1.685
1.870
2.076
2.305
2.558
2.839
3.152
3.498
3.883
4.310
4.785
5.311
5.895
6.544
7.263
8.062
13.585
22.892
65.001
184.565
20%
1.200
1.440
1.728
2.074
2.488
2.986
3.583
4.300
5.160
6.192
7.430
8.916
25%
1.250
1.563
1.953
2.441
3.052
3.815
4.768
5.960
7.451
9.313
11.642
14.552
18.190
22.737
28.422
35.527
44.409
55.511
69.389
86.736
264.698
807.794
30%
(11
1.300
1.690
2.197
2.856
3.713
4.827
6.275
8.157
10.604
13.786
17.922
23.298
30.288
39.374
51.186
66.542
86.504
112.455
146.192
190.050
705.641
10.699
12.839
15.407
18.488
22.186
26.623
31.948
38.338
95.396
237.376
2,619.996
143.371
750.378 1,051.668 1,469.772 7,523.164 36,118.865
3,927.357 5,988.914 9,100.438 70,064.923 497,929.223
Transcribed Image Text:Exhibit 1-B Future Value (Compounded Sum) of $1 Paid In at the End of Each Period for a Given Number of Time Periods (an Annuity)
Period
1
1%
1.000
2.010
3%
1.000
2.030
4%
1.000
2.040
5%
1.000
2.050
2
3
3.030
3.091
3.122
3.153
4
4.060
4.184
4.246
4.310
5
5.101
5.309
5.416
6
6.152
6.468
6.633
7
7.214
7.662
7.898
8
8.892
9.214
9
10.159
10.583
11.464
12.006
12.808
13.486
14.192
15.026
15.618
16.627
8.286
9.369
10.462
11.567
12.683
13.809
14.947
16.097
17.258
18.430
19.615
20.811
17.086
18.292
20.024
18.599
20.157
21.762
22.019
28.243
34.785
48.886
64.463
PESAN-8485
10
11
12
13
14
15
16
17
18
19
20
25
30
40
50
Period
1
2
3
4
5
6
7
8
9
10
11
EHHHH450
12
13
14
15
16
17
18
19
20
25
30
2%
1.000
2.020
3.060
4.122
5.204
6.308
7.434
8.583
9.755
10.950
12.169
13.412
14.680
15.974
17.293
18.639
20.012
21.412
22.841
24.297
32.030
40.568
60.402
84.579
13%
1.000
2.130
3.407
4.850
6.480
8.323
10.405
12.757
15.416
18.420
21.814
25.650
29.985
34.883
40.417
46.672
53.739
61.725
23.414
25.117
26.870
36.459
47.575
75.401
112.797
70.749
80.947
155.620
293.199
21.825
23.698
25.645
27.671
29.778
41.646
56.085
95.026
152.667
5.526
6.802
8.142
9.549
11.027
12.578
14.207
15.917
17.713
19.599
21.579
23.657
25.840
28.132
30.539
33.066
47.727
66.439
120.800
209.348
15%
1.000
2.150
3.473
4.993
6.742
8.754
12%
1.000
14%
1.000
2.120
2.140
3.374
3.440
4.779
4.921
6.353
6.610
8.115
8.536
10.089
10.730
12.300
13.233
14.776
16.085
19.337
23.045
27.271
32.089
17.549
20.655
24.133
28.029
32.393
37.280
42.753
48.884
37.581
43.842
50.980
59.118
55.750
68.394
63.440
78.969
72.052
91.025
133.334
181.871
241.333
356.787
767.091 1,013.704 1,342.025 1,779.090 2,360.757 3,134.522 4,163.213
2,400.018 3,459.507 4,994.521 7,217.716 10,435.649 15,089.502 21,813.094
11.067
13.727
16.786
20.304
24.349
6%
1.000
2.060
3.184
4.375
5.637
6.975
8.394
9.897
11.491
13.181
14.972
16.870
18.882
21.015
23.276
25.673
28.213
30.906
33.760
36.786
54.865
79.058
154.762
290.336
29.002
34.352
40.505
47.580
55.717
65.075
75.836
88.212
102.444
212.793
434.745
16%
1.000
2.160
3.506
5.066
6.877
8.977
11.414
14.240
17.519
21.321
25.733
30.850
36.786
43.672
51.660
60.925
7%
1.000
2.070
3.215
4.440
5.751
7.153
8.654
10.260
11.978
13.816
15.784
17.888
20.141
22.550
25.129
27.888
30.840
33.999
37.379
40.995
63.249
94.461
199.635
406.529
71.673
84.141
98.603
115.380
249.214
530.312
8%
1.000
2.080
3.246
4.506
5.867
7.336
8.923
10.637
12.488
14.487
16.645
18.977
21.495
24.215
17%
1.000
2.170
3.539
5.141
7.014
9.207
11.772
14.773
18.285
22.393
27.200
32.824
39.404
47.103
56.110
66.649
78.979
93.406
110.285
130.033
292.105
647.439
9%
1.000
2.090
3.278
4.573
5.985
7.523
9.200
11.028
13.021
15.193
17.560
20.141
22.953
26.019
27.152
30.324
33.750
37.450
41.446
29.361
33.003
36.974
41.301
46.018
51.160
45.762
84.701
73.106
113.283
136.308
259.057 337.882
573.770
10%
1.000
2.100
3.310
4.641
6.105
7.716
9.487
11.436
13.579
14.164
16.722
19.561
22.713
26.212
30.095
15.937
18.531
21.384
24.523
27.975
31.772
35.950
40.545
45.599
51.159
34.405
39.190
44.501
50.396
56.939
64.203
114.413
57.275
98.347
164.494
199.021
581.826
442.593
815.084 1,163.909 1,668.771
18%
1.000
2.180
3.572
5.215
7.154
9.442
12.142
15.327
19.086
23.521
28.755
34.931
42.219
50.818
60.965
72.939
87.068
103.740
123.414
146.628
342.603
790.948
19%
1.000
2.190
3.606
5.291
7.297
9.683
12.523
15.902
19.923
24.709
30.404
37.180
11%
1.000
2.110
3.342
4.710
6.228
7.913
9.783
11.859
20%
1.000
2.200
3.640
5.368
7.442
9.930
12.916
16.499
20.799
25.959
32.150
39.581
48.497
59.196
72.035
87.442
105.931
128.117
154.740
186.688
471.981
25%
1.000
2.250
3.813
5.766
8.207
11.259
15.073
19.842
25.802
33.253
42.566
54.208
68.760
86.949
109.687
138.109
173.636
218.045
273.556
342.945
30%
1.000
2.300
3.990
6.187
9.043
12.756
17.583
23.858
32.015
42.619
56.405
74.327
97.625
127.913
167.286
218.472
285.014
371.518
483.973
630.165
45.244
54.841
66.261
79.850
96.022
115.266
138.166
165.418
402.042
1,054.791
2,348.803
1,181.882 3,227.174
8,729.985
966.712
5,529.829 7,343.858 30,088.655
120,392.883
31,515.340 45,497.191 280,255.693 1,659,760.743
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