Paul Havlik promised his grandson Jamie that he would give him $6,200 6 years from today for graduating from high school. Assume money is worth 6% interest compounded semiannually.
Paul Havlik promised his grandson Jamie that he would give him $6,200 6 years from today for graduating from high school. Assume money is worth 6% interest compounded semiannually.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
Related questions
Question
Transcribed Image Text:Paul Havlik promised his grandson
Jamie that he would give him
$6,200 6 years from today for
graduating from high school.
Assume money is worth 6% interest
compounded semiannually.
What is the present value of this
$6,200? (Use the Table provided.)
(Do not round intermediate
calculations. Round your answer to
the nearest cent.)
Present value
Transcribed Image Text:Period 0.5% 1.0%
1 0.9950 0.9901
0.9901
2
0.9901 0.9803
3
4
09
5
3
6
9
7
8
9
9
10
11
12
14
13
14
14
15
16
10
17
"7
18
10
19
19
20
21
21
22
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
20
44
0.9851 0.9706
0.9991
45
46
47
0.9609 0.9235
0.9009
0.9802
0.9002
0.9610
0.9754 0.9515
0.9794
0.9283
0.9919
0.9209
0.9705 0.9420
0.8880
0.9145
0.9709 0.9420
0.0000
0.9140
0.9657 0.9327 0.9010
0.9921
0.900
0.90 10
0.8706
0.9143
0.9513 0.9053
0.99 15
0.9901
0.9561
0.9372
0.991€
0.9326 0.8700
0.9920
0.9279 0.8613
0.9€19
0.9233
0.9295
0.9187
0.9141
0.9141
0.9096
0.9096
0.9466 0.8963
0.9400
0.9419 0.8874 0.8364 0.7885
0.94 19 0.0074 0.0904
0.9051
0.9091 0.8195
0.6 199
0.9006
0.9000
02740
0.8610
0.7419
0:0010 0:1970
0.8525
0.0040
0.8482
VOTUE
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
4.5% 5.0%
6.0%
0.8204
3.0%
3.5% 4.0%
5.5%
0.9709 0.9662 0.9615 0.9569 0.9524 0.9479
0.9426
0.9426 0.9335 0.9246 0.9157
0.9 197
0.9070 0.8985
0.9019
0.9286 0.9151
0.9260
0.8890 0.8763
0.90 19 0.0090
0.8638
0.6705
0.8516
0.8038
0.8714 0.8548 0.8386 0.8227 0.8072
0.6072
0.07 14 0.0040 0.0900 0.0221
0.7835 0.7651 0.7473 0.7299
0.1999 0.7091 0.7475 0.7299
0.7252 0.7050
0.7402 0.7252 0.7090
6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0%
0.9434 0.9390 0.9346 0.9302 0.9259 0.9217 0.9174 0.9132 0.9091
0.8900 0.8817
0.8817 0.8734 0.8653 0.8573
0.6973 0.8495 0.8417
0.04 17
0.8340
0.7829
0.8396 0.8278 0.8163
0.6390
0.8050 0.7938
0.0 103
0.7617 0.7513
0.7829 0.7722
0.1990
0.7921 0.7773 0.7629
0.7350 0.7216 0.7084 0.6956
0.7488
0.7210
0.1029 1.1400 0.7990
0.7130 0.6966 0.6806
0.6499
0.7 130 1.0900
0.6650
0.0000
0.9060 0.8885
0.9000 0.0005
0.0020 0.8420
0.0420
0.8219
0.6219
0.8025
0.0029
0.0499
0.6352
0.7462
0.6853
0.0099
0.6480
0.6302
0.0302
0.6129
0.5963
0.5801
0.7107 0.6874 0.6651
0.6091
0.7 107 0.0074
0.5835
0.5470
0.5649
0.9699
0.5649
0.5298
0.5296
0.6768
0.5403
0.5002
0.6446
0.5002
0.6139
0.6139 0.5854
0.5654
2.5%
1.5% 2.0%
0.9852 0.9804 0.9756
0.9707 0.9612 0.9518
0.9563 0.9423
0.9965 0.9429
0.8440
CONTO
0.9422
0.9422
0.8398
0.0990
0.9238
0.9236
0.9097
0.9057
0.8877 0.8535
0.6939
0.0077
0.8746 0.8368
0.6300
0.0740
0.8787 0.8240
0.0701 0.0240
0.8118 0.7579
0.0110
0.8617 0.8203
0.0011
0.8489 0.8043
0.0409
0.7999 0.7430
0.7999
0.7430
0.8839 0.8626
0.0099
0.6210 0.5306
0:0€ 10
0.8623
0.6023
0 5000
0.5202
0.8413
0.64 15
0.8007
0.0001
0.7812
0.7012
0.7621
0.7021
0.7436
0.7254
0.7730
0.7254
0.7894
0.8207
0.0201
0.7694
0.7077
0.7077
0.6905
0:0900
0.8375 0.8135
0.6579
0.8131
0.0191
0.4538
0-1000
0.4427
OFTE!
0.7664
0.7664
0.0199 0.1909
0.7903
0.7860 0.7599
0.7000 0.1999
0.7337 0.7026
0.7337
0.7020
0.6756
0.6496
0.6246
0.7014 0.6618
0.7014 0.00 10
0.6394 0.6006
0.0994 0.0000
0.6810
0.00 10
0.4970
0.4970 0.4697
0:4091
0.3971 0.3757 0.3555 0.3365
0.4410
0.3906
0.4150
0:44 10
0.4190
0.3073
0.3073
0.4986
0.4726
0.4141 0.3878
0.4425
0.4479 0.4173 0.3888 0.3624
0.4423
0.2807
0.2563
0.7880
0.8528
0.7284
0.6736
0.5767
0.5339
0.1978
0.1978
0.1799
0.1799
0.8114
0.7315
0.7207
0.8961 0 8034
0.5529
0.0598 0.5954 0.5375
0.9994
0.8034
0.6468
0.7207
0.5809 0.5219
0.8916 0.7954 0.7100 0.6342 0.5667 0.5067
0.8872 0.7876 0.6995 0.6217 0.5529 0.4919
0.8828 0.7798 0.6892
0.6095 0.5394 0.4776 0.4231 0.3751
0.8784 0.7720 0.6790 0.5976 0.5262 0.4637 0.4088
0.8740 0.7644 0.6690 0.5859 0.5134 0.4502
0.0000
0.4902
0.0007 7500
0.8697 0.7568 0.6591 0.5744 0.5009 0.4371
0.0097
0.000
FOO 0.0000
101
0.6494 0.5631 0.4887 0.4243
0:00
0-100!
0 5504
0.5521 0.4767
05440
07400
0.8653
0.7493
0.0000
0.3207
0:00
0.0630
0.6398
0.0000
0.8567 0.7346
0.5900
0.3677
0.3900
0.3463 0.3262
0.3677
0.3405 0.3191 0.2992
0.3633
0.3191
0.3095 0.5409
0.2992
0.4810
0.3380 0.3152 0.2941
0.3380
0.2745
0.3152 0.2941
0.7600 0.7284
0.6232
0.0730
0.9707 0.9999 0.4945 0.4581 0.4246 0.3936 0.3651 0.3387 0.3144 0.2919 0.2711 0.2519 0.2341
0.4949 0.4961
0.2919
0.2341
0.8444 0.7764 0.7142 0.6572 0.6050 0.5572 0.5134 0.4732 0.4363 0.4024
0.4303
0.3714 0.3428 0.3166 0.2925 0.2703
0.2925
0.2499 0.2311 0.2138
0.7704
0.8360 0.7649 0.7002 0.6412 0.5874 0.5384 0.4936
0.4936 0.4528
0.4920 0.4155 0.3815 0.3503
0.5905 0.3219 0.2959 0.2720 0.2502
0.2902 0.2303 0.2120 0.1952
0.8277 0.7536
0.7950 0.6864 0.6255 0.5703 0.5202 0.4746 0.4333 0.3957 0.3616 0.3305
0.5509 0.3022 0.2765 0.2531 0.2317 0.2122 0.1945
0.1949 0.1783
0.1783 0.1635
0.7425 0.6730 0.6103 0.5537 0.5026 0.4564 0.4146
0.4564
0.3769
02838
0.3427 0.3118
0.2584
0.2838
0.2354 0.2145 0.1956 0.1784
0.1429
0.1628 0.1486
0.6598
0.4856 0.4388
0.4090
0.3968 0.3589 0.3249 0.2942 0.2665
01803
0.2415 0.2190 0.1987
0.1803 0.1637 0.1487 0.1351
0.4692 0.4220 0.3797 0.3418 0.3079 0.2775 0.2502 0.2257 0.2037 0.1839 0.1662
0. 1839
0 1358
0.1502 0.1358 0.1228
0 4533 0.4057
0.4533
0.3634 0.3256 0.2919 0.2618 0.2349 0.2109 0.1895
0.1703
0.1531 0.1378 0.1240 0.1117
0.4380 0.3901 0.3477 0.3101 0.2767 0.2470 0.2206 0.1971 0.1763
01577 0 1412
0.1412
01264 0.1133 0.1015
0.3327 0.2953 0.2622 0.2330 0.2071 0.1842 0.1640 0.1460 0.1301 0.1160 0.1034 0.0923
0.3607 0.3184 0.2812 0.2486 0.2198 0.1945 0.1722 0.1525 0.1352 0.1199 0.1064 0.0945 0.0839
20
0.3950 0.3468 0.3047 0.2678 0.2356 0.2074 0.1826
0.1419
0.2010
0.1609
0.1252 0.1105 0.0976 0.0863 0.0763
00700
1.2390
0.0970
0.4056
*150* Fo
01040
00000
0.3335 0.2916 0.2551 0.2233 0.1956 0.1715 0.1504 0.1320 0.1159 0.1019 0.0895 0.0788 0.0693
0.000 0910
0-2400 0-1000
100 0-1799
04406
0.0000 0.0099 0.0740 00000
0.2790 0.2429 0.2117 0.1846 0.1610 0.1406 0.1228 0.1073 0.0939 0.0822
0.2790
01070
0.0044 0.0006
1010
01640
0.0022
0404
0.0004 0.0000
0.2670 0.2314 0.2006 0.1741 0.1512 0.1314 0.1142 0.0994 0.0865 0.0754
0.2010
O
E
0.0709
0 4000
0.0000
0.2204 0.1902
0.1643 0.1420 0.1228 0.1063 0.0920 0.0797 0.0691 0.0600
01006 01020 OTHE
04447
0.0050 00206
0.1803 0.1550 0.1333 0.1147 0.0988 0.0852 0.0735 0.0634
0.1990
0.1009
0.0092
9-1990
0 4000
04030 0.0040
00000
0.1999 0.1709 0.1462 0.1252 0.1072 0.0919 0.0789 0.0677 0.0582
0-1700
01000
1996 0.149€ TOTE 0:00 10 0.0108 0.000 0.000€ 0.0000
0.1904 0.1620 0.1379 0.1175 0.1002 0.0855 0.0730 0.0624 0.0534 0.0457
0.1904
9-1910 Conve
458
0.100€ 0.0000 0.0676
0:00
0:00!
0.1813 0.1535 0.1301 0.1103 0.0937 0.0796 0.0676 0.0575 0.0490 0.0417
9-1919
9.1991 0.00
AFE
0.009 0:00.00 0:00 0:00
OPONAT
0.1727 0.1455 0.1227 0.1036 0.0875 0.0740 0.0626 0.0530 0.0449 0.0381
0:44O!
0.0020
0-1740
64030
0.1441
0.0000
0.0000 0:0440 0.0001
0.0073
0.2343 0.1962 0.1644 0.1379 0.1158 0.0973 0.0818 0.0688 0.0580 0.0489 0.0412 0.0348
OPTOM 0.0000 6000 0.4040 0.190€
0-1100
04007
0.0000
0.04.14 0.0040
0.0640
0.0450
0.3252 0.2706 0.2253 0.1878 0.1566 0.1307 0.1092 0.0914 0.0765 0.0640 0.0537 0.0450 0.0378 0.0318
0.0206 0.4100 0.4400 9.1970 0-1000
0.0937
0.1007 9.1994 0:00
0:0979 0.00.10
0.3158 0.2614 0.2166 0.1797 0.1491 0.1239 0.1031 0.0858 0.0715 0.0596 0.0497 0.0415 0.0347 0.0290
0:9100
0:€100
400
0.1091
0:1499
0.0000
0.0497
0:0947
04740
0:0€90
0.3066 0.2526 0.2083 0.1719 0.1420 0.1175 0.0972 0.0805 0.0668 0.0554 0.0460 0.0383 0.0318 0.0265
0.0972
0.0000 0.4040 0.2000
0.1920
0.0000 0.0000 0.0004 0.0400 0:0009
0.0200
04945
0.0000
0.2440 0.2003 0.1645 0.1353 0.1113 0.0917 0.0756 0.0624 0.0516 0.0426 0.0353 0.0292 0.0242
0.6990 0.2000
0.1999
0:09 1
0.0010
0.0100 0:00€4
0.04.20 0.0000 0.0292 0.0242
OAZA
04055
0.1926 0.1574 0.1288 0.1055 0.0865 0.0710 0.0583 0.0480 0.0395 0.0325 0.0268 0.0221
0.2990 0.1920
0.1200
1000
GE40
0.0000
0:0909
0.0899
200
0.0020 0.0200
0.0007
0.0241 0.0109
0.6519 0.5272 0.4268
0:9212
0.2278 0.1852 0.1507 0.1227 0.1000 0.0816 0.0667 0.0545 0.0446 0.0365 0.0300 0.0246 0.0202 0.0166
0.0019
0:4200
0.2000 0.6€10 0.1992 www 01227
0.00.10 0.000
0.0040
0.0040
0.0809
0.0202
0.0240
0.0000
0.0440
0.0100
0.8030 0.6454
0.0090
0.5194 0.4184 0.3374 0.2724 0.2201 0.1780 0.1442 0.1169 0.0948 0.0770 0.0626 0.0509 0.0415 0.0338 0.0276 0.0226 0.0184 0.0151
0:04994
0:4 104
0.2724
0.0000
0-1700
0.0980
0.0407
0.0060 0.0009
0.0104 0.0101
0.0000
0.0220
0.7990 0.6391 0.5117 0.4102 0.3292 0.2644
0.1712
0.2127
0.1380 0.1113 0.0899 0.0727 0.0588 0.0476 0.0386 0.0313 0.0254 0.0207 0.0168 0.0137
0.0091 09777 0:4106
0.2049
0.0044
9-1712
0.0000
0000
0.0055
0.0204
0.08.19
0.0000
04000
0.7950 0.6327 0.5042 0.4022 0.3211 0.2567 0.2055 0.1646 0.1320 0.1060 0.0852 0.0685 0.0552 0.0445 0.0359 0.0290 0.0235 0.0190 0.0154
0.7910 0.6265 0.4967 0.3943 0.3133 0.2493 0.1985 0.1583 0.1263 0.1009 0.0807 0.0647 0.0518 0.0416 0.0334 0.0269 0.0216 0.0174 0.0140
48 0.7871 0.6203 0.4894 0.3865 0.3057 0.2420 0.1918 0.1522 0.1209 0.0961 0.0765 0.0610 0.0487 0.0389 0.0311 0.0249 0.0199 0.0160 0.0128
49 0.7832 0.6141 0.4821 0.3790 0.2982 0.2350 0.1853 0.1463 0.1157 0.0916 0.0725 0.0575 0.0457 0.0363 0.0289 0.0230 0.0184 0.0147 0.0117
50 0.7793 0.6080 0.4750 0.3715 0.2909 0.2281 0.1791 0.1407 0.1107 0.0872 0.0688 0.0543 0.0429 0.0339 0.0269 0.0213 0.0169 0.0134 0.0107
0.0719
0.0002
0.0657 0.0573
0.0000 000
0.0521
0.0000 0:00
0.0548 0.0474
0.6303 0.5412 0.4651
0.0000
0.2555
0.0007
02030
0.9412
0-100
0:2000
0*20*
0.7273
0.2099
02600
0:0940
0.7201
0.6118
0.0500
0500
0.010 05406
0.7130 0.6028 0.5100
0000
0:0020
000
0.7059 0.5939 0.5000
7000
0.8356 0.6989 0.5851
0.0000 10000
09000 0.0000
0.4902 0.4111 0.3450 0.2898
0.1006 www
0.4000
0.4806 0.4011 0.3350 0.2800
0.2437
0.2050
0.4000
0.0000
0.0294
O
0:00
0.0207
0.0243
0.0267
0.8315 0.6920 0.5764
0.4000
0:0010
0 5670
0.8274 0.6852 0.5679 0.4712 0.3913
0:0€14
0.47 12 0.99 19
06704
0.8232 0.6784 0.5595 0.4619 0.3817
0.0292
09990 0:4018 03704
0.6747
0.6717 0.5513 0.4529
0:00
1-4040
0.8151 0.6650 0.5431 0.4440
0.0191
00506
00000
*
00000
0.8191
0.0191
0.3724
0.9764
0.0240
0.0221
0:0€€
0.0201
0.3633
0.2976
0.9099
0.2970
O GERA
0.8110 0.6584
09790
0.5351 0.4353 0.3545 0.2890
0.9991
0.040
0.0183
0.2358
0.0110
0.8070
0.0070
14990 0.0040 0.2090
0.3458 0.2805
3374
0.0100
0.0125
0.0113
0.0103
0.0094
0.0085
0.7441
0.7089
0.7441 0.7009
0.7224 0.6849
0.7994
0.7594
0.6611
0.0011
0.6419
0.7307
0.7907
0.7679
0.1019
0.3817
0.00
0.3687
0.000
0.3563
0.3083
0.0000 0.0000
0.1040
0.7348
0.3000
0.0000
0.7032
0.7092
0.6729
0.07.20
0.2534
0.600m
0.6439
0.6439
0.6162
0.0102
0.5897
0.5897
0.5775
0.6178
0.0170
0.5969 0.5553 0.5167
0.5553
0.9900
0.4120
07760
0.4000 0.3442 0.2965
0.000
0.3883 0.3326
0.0064
0.2851 0.2445
0.9999
0.0040
3
0.3770 0.3213 0.2741 0.2340
0.0000
VET 0600
00405
0.4319 0.3660 0.3105
9:4010
0:9100
0.2636 0.2239
0.4000
0.4214 0.3554
0.5643 0.5303
0.9045 0.9505
0.5051
0.5400
0.2143
060
0.6516 0.6274
0.09 10
0.6042
0.0274 0.0042
0.5919
0.6176
0.5674
0.9919 0.9074
0.5847
0.5549
0.9047 0.9949 0.9200
0.5268
0.5584 0.5327
0.0004 0.99€!
0.5568
0.5260
0.9900
0.6435
0.0499
0.4688
0.4000
0.5002
0.0002
0.6663
0.0009
0.0221
0.6227
0.5820
0.9020
0.6028
0.6028
0.5607
0.5007
0.5439 0.5216
0.9499
0.5083 0.4852
0.0009
0.4440
0.4440
0.4751 0.4513
0.4751 0.49 13
0.4199
0.5019 0.4838
0.4090
0.5207
0.5207
0.4799 0.4604
0.4423
0.4632
0.4032
0.4289
0.4076
0.4209
0.4224
0.4224
0.3875
0.4418
0.44 16
0.4035
0.3685
0.6830
0.6830
0.6209
0.5645
0.9049
0.5132
0.9132
0.4665
0.4009
0.4241
0.4241
0.3855
0.3099
0.9900
0.3505
0.3186
0.2897
0.2897
0.2099
0.2633
0.2394
0.2176
0.2170
0.0431
0.049
0.0391
0.009
0.0356
0.0980
0.0323
0.0020
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