You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.)
You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (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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Question
You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.)
Transcribed Image Text:Periods 9%
1
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10%
11%
14%
12% 13%
15%
0.89286 0.88496 0.87719 0.86957
0.90909
0.91743
0.90090
0.84168 0.82645 0.81162
0.73119
0.79719
0.71178
0.78315 0.76947 0.75614
0.69305 0.67497 0.65752
0.77218 0.75131
0.70843
0.68301
0.65873
0.63552
0.64993
0.62092
0.59345 0.56743
21
22
23
24
25
0.38753 0.35049 0.31728 0.28748
0.35553 0.31863 0.28584
0.32618 0.28966
0.29925
0.26333
0.27454
0.23939
0.59627 0.56447
0.53464 0.50663
0.48032 0.45559
0.54703 0.51316 0.48166 0.45235 0.42506 0.39964
0.50187 0.46651 0.43393 0.40388 0.37616 0.35056
0.46043 0.42410 0.39092 0.36061 0.33288 0.30751
0.35218 0.32197 0.29459 0.26974
0.42241
0.38554
0.26070
0.25668 0.23071
0.20416
0.20462 0.18068
0.15989
0.25751 0.22917
0.23199
0.20900 0.18270
0.61332
0.54276
0.25187
0.21763 0.18829
0.16312
0.23107
0.19784 0.16963 0.14564
0.21199
0.17986
0.15282
0.13004
0.19449 0.16351
0.13768
0.17843 0.14864
0.12403
0.11611
0.10367
16%
17%
0.86207 0.85470
0.74316 0.73051
0.64066 0.62437
0.59208 0.57175 0.55229 0.53365
0.51937 0.49718 0.47611 0.45611
0.14150
0.12522
0.11081
0.09806
0.08678
0.23662
0.20756
0.18207
0.15971
0.14010
18%
0.84746
0.71818
0.60863
0.51579
0.43711
0.43233 0.41044 0.38984 0.37043
0.37594 0.35383 0.33320 0.31393
0.32690 0.30503 0.28478 0.26604
0.28426 0.26295 0.24340 0.22546
0.24718 0.22668 0.20804 0.19106
0.12289
0.10780
0.09456 0.08081 0.06914
0.08295
0.07276
0.21494 0.19542 0.17781
0.18691 0.16846 0.15197
0.16253
0.14523 0.12989 0.11629
0.14133 0.12520 0.11102 0.09855
0.12289 0.10793 0.09489 0.08352
0.16192
0.13722
0.10686 0.09304 0.08110 0.07078
0.09293 0.08021
0.06932 0.05998
0.05925
0.05083
0.04308
0.07027 0.05961 0.05064
0.06110 0.05139 0.04328
0.03651
0.13513
0.16370
0.15018 0.12285
0.11174 0.09256 0.07680 0.06383 0.05313 0.04430 0.03699 0.03094
0.10067 0.08264 0.06796 0.05599 0.04620 0.03819 0.03162 0.02622
0.13778 0.11168 0.09069 0.07379 0.06014 0.04911 0.04017 0.03292 0.02702 0.02222
0.12640 0.10153 0.08170 0.06588 0.05323 0.04308 0.03493 0.02838 0.02310 0.01883
0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.03038
0.01596
0.02447 0.01974
Periods
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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