Sam Long anticipates he will need approximately $225,100 in 10 years to cover his 3-year-old daughter's college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount
Sam Long anticipates he will need approximately $225,100 in 10 years to cover his 3-year-old daughter's college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount
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
Transcribed Image Text:Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
9.5%
10.0%
Period 0.5% 1.0%
1
0.8340
2
3
0.7462 0.7252 0.7050 0.6853 0.6663 0.6480 0.6302 0.6129
9
10
11
12
13
14
18
0.4746
1.5% 20% 2.5% 3.0 % 3.5 % 4.0% 4.5% 5.0% 5.5%
6.0% 6.5% 7.0 % 7.5 % 8.0% 8.5% 9.0 %
0.9950 0.9901 0.9852 0.9804 0.9756 0.9709 0.9662 0.9615 0.9569 0.9524 0.9479 0.9434 0.9390 0.9346 0.9302 0.9259 0.9217 0.9174 0.9132 0.9091
0.9901 0.9803 0.9707 0.9612 0.9518 0.9426 0.9335 0.9246 0.9157 0.9070 0.8985 0.8900 0.8817 0.8734 0.8653 0.8573 0.8495 0.8417
0.9851 0.9706 0.9563 0.9423 0.9286 0.9151 0.9019 0.8890
0.8264
0.8763 0.8638 0.8516 0.8396 0.8278 0.8163 0.8050 0.7938
0.9802 0.9610 0.9422 0.9238 0.9060 0.8885 0.8714 0.8548 0.8386
0.7829 0.7722 0.7617 0.7513
08227 0.8072 0.7921 0.7773 0.7629 0.7488 0.7350 0.7216 0.7084
0.9754 0.9515 0.9283 0.9057 0.8839 0.8626 0.8420 0.8219 0.8025
0.6956 0.6830
0.7835 0.7651 0.7473 0.7299 0.7130 0.6966 0.6806
0.9705 0.9420 0.9145 0.8880 0.8623 0.8375 0.8135 0.7903 0.7679
0.6650 0.6499 0.6352 0.6209
0.9657 0.9327 0.9010
0.5963
0.8706
0.5801
0.8413 0.8131 0.7860 0.7599 0.7348 0.7107
0.5645
0.6874 0.6651 0.6435
0.9509 0.9235 0.8877
0.6227 0.6028 0.5835 0.5649
0.8535
0.5470 0.5298
0.8207
0.5132
0.7894 0.7594 0.7307 0.7032 0.6768 0.6516 0.6274 0.6042 0.5820
0.9561 0.9143 0.8746
0.5607 0.5403 0.5207 0.5019
0.8368 0.8007
0.4838
0.7664
0.4665
0.7337
0.7026 0.6729 0.6446 0.6176 0.5919 0.5674 0.5439 0.5216
0.9513 0.9053 0.8617 0.8203
0.5002 0.4799 0.4604 0.4418
0.7812 0.7441 0.7089
0.4241
0.6756 0.6439 0.6139 0.5854 0.5584 0.5327 0.5083 0.4852
0.9466 0.8953 0.8489 0.8043
0.4632 0.4423 0.4224
0.7621 0.7224 0.6849 0.6496 0.6162
0.4035
0.3855
0.5847 0.5549 0.5268 0.5002 0.4751 0.4513
0.9419 0.8874 0.8364 0.7885
0.4289 0.4076 0.3875 0.3685 0.3505
0.7436 0.7014 0.6618 0.6246 0.5897 0.5568 0.5260 0.4970 0.4697 0.4440 0.4199
0.9372 0.8787 0.8240
0.3971
0.7730 0.7254
0.3757
0.6810 0.6394 0.6006 0.5643 0.5303 0.4986
0.3555 0.3365 0.3186
0.4688 0.4410 0.4150
0.9326 0.8700 0.8118 0.7579
0.3906 0.3677 0.3463
0.7077 0.6611
0.3262 0.3073 0.2897
0.6178 0.5775 0.5400 0.5051 0.4726 0.4423 0.4141
15
0.9279
0.3878
0.8613 0.7999 0.7430
0.3633 0.3405
0.6905 0.6419
0.3191 0.2992
0.5969 0.5553
0.2807 0.2633
0.5167 0.4810 0.4479 0.4173 0.3888 0.3624 0.3380
16 0.9233 0.8528 0.7880 0.7284
0.3152
0.6736 0.6232
0.2941
0.5767 0.5339
0.2745
0.4945 0.4581 0.4246
0.2563 0.2394
0.3936 0.3651 0.3387
17 0.9187
0.3144
0.8444 0.7764 0.7142
0.2919
0.6572 0.6050
0.2711
0.5572 0.5134 0.4732
0.2519 02341
0.4363
0.2176
0.4024 0.3714 0.3428
0.9141 0.8360 0.7649 0.7002
0.3165 0.2925 0.2703
0.6412 0.5874
0.2499
0.5384
0.4936
0.4528
0.2311 0.2138 0.1978
0.4155 0.3815 0.3503 0.3219 0.2959 0.2720
0.9096 0.8277 0.7536 0.6864 0.6255 0.5703
0.2502 0.2303
0.5202
02120 0.1952
0.4333
0.1799
0.3957 0.3616 0.3305 0.3022
20 0.9051 0.8195
0.2765 0.2531
0.7425 0.6730 0.6103
0.2317
0.5537 0.5026
02122
0.4564 0.4146
0.1945 0.1783
0.3769
0.1635
0.3427 0.3118 0.2838 0.2584
21 0.9006 0.8114 0.7315 0.6598
02354 0.2145 0.1956
0.5954 0.5375 0.4856 0.4388
0.1784
0.3968
0.1628
0.3589 0.3249
0.1486
02942
22
0.2665
0.8961 0.8034 0.7207
0.2415 02190
0.6468 05809 0.5219
0.1987 0.1803 0.1637
0.4692 0.4220
0.3797 03418 03079 02775
0.1487 0.1351
23 0.8916 0.7954
0.2502
0.7100 06342
0.2257 0.2037
0.5667
0.1839 0.1662 0.1502 0.1358
0.5067 0.4533 0.4057 0.3634 0.3256
0.1228
24
0.2919 0.2618
0.8872 0.7876 0.6995
0.2349 0.2109 0.1895
0.6217
0.5529 0.4919 0.4380 0.3901 0.3477 0.3101
0.1703 0.1531 0.1378 0.1240 0.1117
0.2767
25 0.8828 0.7798
0.2470 0.2206 0.1971
0.6892 0.6095 0.5394 0.4776 04231
0.1763 0.1577 0.1412 0.126
0.3751 0.3327 0.2953 0.2622 02330
0.1133 0.1015
26 0.8784 0.7720 0.6790 0.5976
02071 0.1842 0.1640 0.1460
0.5262 0.4637 0.4088
0.1301
0.3607
0.1160 0.1034
0.3184 0.2812 0.2485 02198
0.0923
27 0.8740 0.7644 0.6690 0.5859
0.1945 0.1722 0.1525 0.1352 0.1199
0.5134 0.4502
0.3950 0.3468 0.3047
0.1064 0.0945
0.0839
0.8697 0.7568 0.6591 0.5744 0.5009
0.2678 0.2356 02074 0.1826 0.1609 0.1419 0.1252 0.1105
0.4371 0.3817
0.0976
0.3335 0.2916 0.2551 0.2233
0.0863 0.0763
0.8653 0.7493 0.6494 0.5631 0.4887 0.4243
0.1956 0.1715 0.1504 0.1320 0.1159
0.3687
0.1019 0.0895 0.0788
0.3207 0.2790 0.2429 0.2117
0.0693
0.8610 0.7419 0.6398 0.5521
0.1846 0.1610 0.1406
0.4767 0.4120
0.1228 0.1073
0.3563
0.0939
0.3083
0.0822 0.0719 0.0630
0.8567
0.2670 0.2314 0.2006 0.1741
0.7346 0.6303 0.5412
0.1512
0.4651
0.1314
0.4000 0.3442 02965
0.1142 0.0994 0.0865 0.0754 0.0657 0.0573
0.2555
0.8525
0.2204 0.1902 0.1643
0.7273 0.6210 0.5306 0.4538
0.1420
0.3883
0.1228
0.1063 0.0920 0.0797 0.0691 0.0600 0.0521
03326 0.2851 0.2445 0.2099 0.1803
0.8482 0.7201 06118 0.5202
0.1550 0.1333
0.4427
0.1147
0.3770 0.3213 02741
0.0988 0.0852 0.0735 0.0634 0.0548 0.0474
02340 0.1999 0.1709 0.1462
0.4319
0.1252
0.3660 0.3105
0.1072 0.0919 0.0789 0.0677
0.2636
0.0582 0.0500 0.0431
02239 0.1904 0.1620 0.1379
0.4214 0.3554
0.1175 0.1002 0.0855
0.3000
0.0730 0.0624
0.2534 02143
0.0534 0.0457 0.0391
0.1813 0.1535
0.4111
0.1301 0.1103
0.3450
0.0937 0.0796
0.2898 02437 0.2050 0.1727
0.0576 0.0575 0.0490 0.0417 0.0356
0.1455
0.1227
0.3350
0.1036 0.0875
0.2800 0.2343
0.0740 0.0626 0.0530 0.0449
0.1962
0.0381
0.1644 0.1379
00323
0.1158 0.0973 0.0818
0.3252 0.2706 0.2253
0.0688 0.0500 0.0489 0.0412
0.1878
0.0348
0.1566 0.1307 0.1092 0.0914 0.0765
0.3158 0.2614
0.0640 0.0537 0.0450
0.2166
0.0378
0.1797
0.0318
0.1491 0.1239 0.1031 0.0858 0.0715 0.0596
0.2526
0.0497 0.0415
0.2003
0.0347 0.0290
0.0972 0.0805
0.2976 02440
0.0668 0.0554 0.0460 0.0383 0.0318 0.0265
0.0756 0.0624 0.0516 0.0426 0.0353 0.0292 0.0242
0.1055
0.0710 0.0583 0.0480 0.0395 0.0325 0.0268 0.0221 0.0183
0.1000 0.0816 0.0667 0.0545 00446 0.0365 0.0300 0.0246 0.0202 0.0166
0.0948 0.0770 0.0626 0.0509 0.0415 0.0338 0.0276 0.0226 0.0184
0.1113 0.0899 0.0727 0.0588 0.0476
0.0151
0.0386 0.0313 0.0254
0.1060
0.0207 0.0168
0.0852 00685
0.0137
0.0552 0.0445 0.0359 0.0290 0.0235 0.0190
0.1009 0.0807 0.0647
0.0125
0.0518 0.0416 0.0334 0.0269 0.0216 0.0174 0.0140
0.1209 0.0961 0.0765 0.0610 0.0487
0.0113
0.0389
0.0249
0.1157 0.0916 0.0725 0.0575 0.0457 0.0363 0.0289 0.0230
0.0199 0.0160 0.0128 0.0103
0.2281 0.1791 0.1407 0.1107 00872 00688 00543 00429 00339 00259 0.0213
0.0184 0.0147 0.0117 0.0094
0.0169 0.0134 0.0107 0.0085
28
0.7130 0.6028 0.5100
0.7059 0.5939 0.5000
0.6989 0.5851 0.4902
0.4806
0.6920 0.5764
0.4011
0.8274 0.6852 0.5679
0.0294
0.6784
0.0267
0.5595
0.8232
0.8191
0.4619
0.0243
0.6717
0.5513
0.4529
0.1719
0.1420
0.1175
0.8151
0.6650
05431 0.4440
0.1645
0.1353
0.1113
08110
0.0221
0.0201
0.6584
0.6519
0.2890 0.2358
0.2805 0.2278
0.0917
00865
0.1574
0.1288
0.8070
0.2003
0.1926
0.1852
0.1780
04712 0.3913
0.3817
0.3724 0.3066
0.3633
0.5351 0.4353 0.3545
0.5272 0.4268 0.3458
08030 0.6454 0.5194 0.4184 0.3374 02724 02201
0.7990 0.6391 0.5117 0.4102 0.3292
02644
02127
0.7950 0.6327 0.5042 0.4022 0.3211 0.2567 0.2055
0.7910
0.4967 0.3943 0.3133 0.2493
0.7871
0.4894 0.3865 0.3057 0.2420
0.7832
0.6141 0.4821 0.3790 0.2982 0.2350
0.7793 06080 04750 03715 0.2909
0.1507
0.1227
0.1169
0.1442
0.1712
0.1380
0.1646
0.1320
0.0154
0.6265
0.6203
0.1263
0.1985
0.1918
0.1853
0.1583
0.1522
0.1463
0.0311
4
5
6
7
8
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
0.8440
0.8398
0.8356
0.8315
Sam Long anticipates he will need approximately $225,100 in 10 years to cover his 3-year-old daughter's college
bills for a 4-year degree.
Amount
How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table
provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education