Pete Air wants to buy a used Jeep in 6 years. He estimates the Jeep will cost $17,400. Assume Pete invests $12,400 now at 12% interest compounded semiannually. a. Calculate the maturity value of the investment. (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Maturity value
Pete Air wants to buy a used Jeep in 6 years. He estimates the Jeep will cost $17,400. Assume Pete invests $12,400 now at 12% interest compounded semiannually. a. Calculate the maturity value of the investment. (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Maturity value
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
Transcribed Image Text:lia.mheducation.com/Media/Connect_Production/bne/Slater_13e/Futurevalue_decimal.jpg
Future value interest factor of $1 per period at i% for n periods, FVIF(i,n).
Period
0.5%
1.0%
1.5%
2.5%
1.0250
2.0%
3.0%
3.5%
4.0%
1.0400
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
1.0050 1.0100 1.0150 1.0200
1.0100 1.0201 1.0302 1.0404
1.0151 1.0303 1.0457 1.0612
1.0202 1.0406 1.0614 1.0824
1.0253 1.0510 1.0773 1.1041
1.0304 1.0615 1.0934 1.1262
1.0355 1.0721 1.1098 1.1487
1.0407 1.0829 1.1265 | 1.1717
1.0459 1.0937 1.1434 1.1951
1.0511 1.1046 1.1605 1.2190
1.0564 1.1157 1.1779 | 1.2434
1.0617 | 1.1268 1.1956 1.2682
1.0670 1.1381 1.2136 1.2936
1.0723 1.1495 1.2318 1.3195
1.0777 1.1610 1.2502 1.3459
1.0831 1.1726 1.2690 1.3728
1.0885 1.1843 1.2880 1.4002
1.0939 1.1961 1.3073 1.4282
1.0994 1.2081
1.1049 1.2202 1.3469 1.4859
1.1104 1.2324 1.3671 1.5157
22
1.0300
1.0350
1.0450
1.0500
1.0550
1.0600
1.0650
1.0700
1.0750
1.0800
1.0850
1.0900
1.0950
1.1000
1.0506
1.0609
1.0712
1.0816
1.0920
1.1025
1.1130
1.1236
1.1342
1.1449
1.1556
1.1664
3
1.0769
1.0927
1.1087
1.1249
1.1412
1.1576
1.1772
1.1881
1.1990
1.2100
1.1742
1.1910
1.2079
1.2250
1.2423
1.2597
1.2773
1.2950
1.3129
1.3310
1.1038
1.1255
1.1475
1.1699
1.1925
1.2155
1.2388
1.2625
1.2865
1.3108
1.3355
1.3605
1.3859
1.4116
1.4377
1.4641
1.1314
1.1593
1.1877
1.2167
1.2462
1.2763
1.3070
1.3382
1.4185
1.3701
1.4026
1.4356
1.4693
1.5037
1.5386
1.5742
1.6105
1.1597
1.1941
1.2293
1.2653
1.3023
1.3401
1.3788
1.4591
1.5007
1.5433
1.5869
1.6315
1.6771
1.7238
1.7716
1.1887
1.2299
1.2723
1.3159
1.3609
1.4071
1.4547
1.5036
1.5540
1.6058
1.6590
1.7138
1.7701
1.8280
1.8876
1.9487
8.
1.2184
1.3168
1.2668
1.3048
1.3686
1.4221
1.4775
1.5347
1.5938
1.6550
1.7182
1.7835
1.8509
1.9206
1.9926
2.0669
2.1436
6.
1.2489
1.3629
1.4233
1.4861
1.5513
1.6191
1.6895
1.7626
1.8385
1.9172
1.9990
2.0839
2.1719
2.2632
2.3579
10
1.2801
1.3439
1.4106
1.4802
1.5530
1.6289
1.7081
1.7908
1.8771
1.9672
2.0610
2.1589
2.2610
2.3674
2.4782
2.5937
11
1.3121
1.3842
1.4600
1.5395
1.6229
1.7103
1.8021
1.8983
1.9992
2.1049
2.2156
2.3316
2.4532
2.5804
2.7137
2.8531
12
1.3449
1.4258
1.5111
1.6010
1.6959
1.7959
1.9012
2.0122
2.1291
2.2522
2.3818
2.5182
2.6617
2.8127
2.9715
3.1384
13
1.3785
1.4685
1.5640
1.6651
1.7722
1.8856
2.0058
2.1329
2.2675
2.4098
2.5604
2.7196
2.8879
3.0658
3.2537
3.4523
14
1.4130
1.5126
1.6187
1.7317
1.8519
1.9353
1.9799
2.1161
2.2609
2.4149
2.5785
2.7524
2.9372
3.1334
3.3417
3.5629
3.7975
15
1.4483
1.5580
1.6753
1.8009
2.0789
2.2325
2.3966
2.5718
2.7590
2.9589
3.1722
3.3997
3.6425
3.9013
4.1772
16
1.4845
1.6047
1.6528
1.7340
1.8730
3.1808
3.4259
3.6887
4.0023
2.0224
2.1829
2.3553
2.5404
2.6928
2.9522
3.9703
4.3276
2.7390
4.2719
4.5950
5.0545
17
1.5216
1.7947
1.9479
2.1134
2.2920
2.4848
2.9170
3.1588
3.4194
3.7000
4.6778
18
1.5597
1.7024
1.8575
2.0258
2.2085
2.4066
2.6215
2.8543
3.1067
3.3799
3.6758
3.9960
4.3425
4.7171
5.1222
5.5599
19
1.3270 1.4568
1.5987
1.7535
1.9225
2.1068
2.3079
2.5270
2.7656
3.0256
3.3086
3.6165
3.9515
4.3157
4.7116
5.1417
5.6088
6.1159
20
1.6386
1.8061
1.9898
2.1911
2.4117
2.6533
2.9178
3.2071
3.5236
3.8697
4.2479
4.6610
5.1120
5.6044
6.1416
6.7275
21
1.6796
1.8603
2.0594
2.2788
2.5202
2.7860
3.0782
3.3996
3.7527
4.1406
4.5664
5.0338
5.5466
6.1088
6.7251
7.4002
3.9966
4.4304
4.9089
5.4365
6.0180
6.6586
7.3639
8.1403
1.1160 1.2447 1.3876 1.5460
1.1216 1.2572 1.4084 1.5769
1.1272 1.2697 1.4295 1.6084
1.1328 1.2824 1.4509 1.6406
1.1385 1.2953 1.4727 1.6734
1.1442 1.3082 1.4948 1.7069
1.1499 1.3213 1.5172 1.7410
29
1.7216
1.9161
2.1315
2.3699
2.6337
2.9253
3.2475
3.6035
23
1.7646
1.9736
2.2061
2.4647
2.7522
3.0715
3.4262
3.8197
4.2564
4.7405
5.2771
5.8715
6.5296
7.2579
8.0635
8.9543
7.9111
8.8296
9.8497
6.3412
6.8485
3.6146
4.0489
4.5331
5.0724
5.6729
7.0846
2.8760
3.0054
24
1.8087
2.0328
2.2833
2.5633
3.2251
25
1.8539
2.0938
2.3632
2.6658
3.3864
3.8134
4.2919
4.8277
5.4274
6.0983
7.6868
8.6231
9.6684
10.8347
26
1.9003
2.1566
2.4460
2.7725
3.1407
3.5557
4.0231
4.5494
5.1415
5.8074
6.5557
7.3964
8.3401
9.3992
10.5869
11.9182
27
1.9478
2.2213
2.5316
2.8834
3.2820
3.7335
4.2444
4.8223
5.4757
6.2139
7.0474
7.9881
9.0490
10.2451
11.5926
13.1100
1.9965
2.2879
2.6202
2.9987
3.4297
3.9201
4.4778
5.1117
5.8316
6.6488
7.5759
8.6271
9.8182
11.1671
12.6939
14.4210
28
15.8631
12.1722
13.2677
13.8998
10.6528
11.5583
4.1161
4.7241
5.4184
6.2107
7.1143
8.1441
9.3173
3.1187
3.2434
3.5840
1.1556 1.3345 1.5400 1.7758
1.1614 1.3478 1.5631 1.8114
1.1672 1.3613 1.5865 1.8476
1.1730 1.3749 1.6103 1.8845
1.1789 1.3887 1.6345 1.9222
1.1848 1.4026 1.6590 1.9607
1.1907 1.4166 1.6839 1.9999
1.1967 1.4308 1.7091 2.0399
2.0464
2.3566
2.7119
2.0976
2.4273
2.8068
3.7453
4.3219
4.9840
5.7435
6.6144
7.6123
8.7550
10.0627
15.2203
17.4494
30
2.1500
2.5001
2.9050
3.3731
3.9139
4.5380
5.2581
6.0881
7.0443
8.1451
9.4116
10.8677
12.5407
14.4618
16.6662
19.1943
31
5.5473
6.4534
7.5022
8.7153
10.1174
11.7371
13.6067
15.7633
18.2495
21.1138
32
2.2038
2.5751
3.0067
3.5081
4.0900
4.7649
3.1119
3.6484
4.2740
5.0032
5.8524
6.8406
7.9898
9.3253
10.8763
12.6760
14.7632
17.1820
19.9832
23.2252
33
2.2589
2.6523
18.7284
21.8816
25.5477
2.3153
2.7319
3.2209
3.7943
4.4664
5.2533
6.1742
7.2510
8.5092
9.9781
11.6920
13.6901
16.0181
34
4.6673
5.5160
6.5138
7.6861
9.0623
10.6766
12.5689
14.7853
17.3796
20.4140
23.9604
28.1024
35
2.3732
2.8139
3.3336
3.9461
26.2366
30.9127
4.1039
4.8774
5.7918
6.8721
8.1473
9.6513
11.4239
13.5115
15.9682
18.8569
22.2512
36
2.4325
2.8983
3.4503
28.7291
31.4584
5.0969
6.0814
7.2501
8.6361
10.2786
12.2236
14.5249
17.2456
20.4597
24.2538
34.0039
4.2681
3.5710
3.6960
37
1.2027 1.4451
1.7348 2.0807
2.4933
2.9852
13.0793
15.6143
18.6253
22.1988
26.4367
37.4043
3.0748
4.4388
5.3262
6.3855
7.6488
9.1543
10.9467
1.2087 1.4595 1.7608 |2.1223
1.2147 1.4741 1.7872 21647
1.2208 1.4889 1.8140 2.2080
1.2269 1.5038 1.8412 2.2522
1.2330 1.5188 1.8688 2.2972
1.2392 1.5340 1.89692.3432
1.2454 1.5493 1.9253 2.3901
1.2516 1.5648 1.9542 2.4379
1.2579 1.5805 1.9835 2.4866
38
2.5557
11.6583
13.9948
16.7853
20.1153
24.0857
28.8160
34.4469
41.1448
2.6196
3.1670
3.8254
4.6164
5.5659
6.7048
8.0695
9.7035
45.2593
49.7852
39
7.0400
8.5133
10.2857
12.4161
14.9745
18.0442
21.7245
26.1330
31.4094
37.7194
40
2.6851
3.2620
3.9593
4.8010
5.8164
34.2363
41.3027
6.0781
7.3920
8.9815
10.9029
13.2231
16.0227
19.3976
23.4625
28.3543
2.7522
3.3599
4.0978
4.9931
45.2265
54.7637
37.3175
40.6761
44.3370
41
7.7616
9.4755
11.5570
14.0826
17.1443
20.8524
25.3395
30.7644
2.8210
3.4607
4.2413
5.1928
6.3516
49.5230
60.2401
42
6.6374
8.1497
9.9967
12.2505
14.9980
18.3444
22.4163
27.3666
33.3794
43
2.8915
3.5645
4.3897
5.4005
29.5560
36.2167
54.2277
66.2641
4.5433
5.6165
6.9361
8.5572
10.5465
12.9855
15.9729
19.6285
24.0975
72.8905
59.3793
65.0204
44
2.9638
3.6715
13.7646
17.0111
21.0025
25.9048
31.9204
39.2951
48.3273
3.0379
3.7816
4.7024
5.8412
7.2482
8.9850
11.1266
42.6352
52.6767
80.1795
45
9.4343
11.7385
14.5905
18.1168
22.4726
27.8477
34.4741
7.5744
7.9153
3.1139
3.8950
4.8669
6.0748
37.2320
46.2592
57.4176
71.1973
88.1975
46
24.0457
29.9363
19.2944
20,5485
3.1917
4.0119
5.0373
6.3178
9.9060
12.3841
15.4659
50.1912
62.5852
77.9611
97.0172
1.2642 1.5963 2.0133 2.5363
40.2106
32.1815
34.5951
47
6.5705
8.2715
10.4013
13.0653
16.3939
25.7289
106.7190
85.3674
5.2136
5.3961
68.2179
1.2705 1.6122 2.0435 2.5871
1.2768 1.6283 2.0741 2.6388
1.2832 1.6446 2.1052 2.6916
48
3.2715
4.1323
27.5299
43.4274
54.4574
4.2562
6.8333
8.6437
10.9213
13.7838
17.3775
21.8842
59.0863
74.3575
93.4773
117.3909
49
3.3533
14.5420
18.4202
23.3067
29.4570
37.1897
46.9016
3.4371
4.3839
5.5849
7.1067
9.0326
11.4674
50
Transcribed Image Text:Pete Air wants to buy a used Jeep in 6 years. He estimates the Jeep will cost $17,400. Assume Pete invests $12,400 now at 12%
interest compounded semiannually.
a. Calculate the maturity value of the investment. (Use the Table provided.) (Do not round intermediate calculations. Round your
answer to the nearest cent.)
Maturity value
b. Will Pete have enough money to buy the Jeep at the end of 6 years?
O Yes
No
Sce
S.
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