Solve the following problem using elther Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table nearest cent and percents to the nearest hundredth of a percent) actors George Invests $12,875, at 6% Interest, semiannually for 8 years. Calculate the compound amount for his investment. O $7,785.64 O $19,055.00 O $20,520.82 O $20,660.64

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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Solve the following problem using elther Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the
nearest cent and percents to the nearest hundredth of a percent)
George Invests $12,875, at 6% interest, semiannually for 8 years. Calculate the compound amount for his investment.
O $7,785.64
O $19,055.00
O $20,520.82
O $20,660.64
Transcribed Image Text:Solve the following problem using elther Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) George Invests $12,875, at 6% interest, semiannually for 8 years. Calculate the compound amount for his investment. O $7,785.64 O $19,055.00 O $20,520.82 O $20,660.64
TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest)
Perlods
1%
1%
2%
3%
4%
5%
6%
7%
8%
Perlods
1.00500
1.01000
1.01500
1.02000
1.03000
1.04000
1.05000
1.06000
1.07000
1.08000
2
1.01003
1.02010
1.03023
1.04040
1.06090
1.08160
1.10250
1.12360
1.14490
1.16640
1.01508
1.03030
1.04568
1.06121
1.09273
1.12486
1.15763
1.19102
1.22504
1.25971
3
4.
1.02015
1.04060
1.06136
1.08243
1.12551
1.16986
1.21551
1.26248
1.31080
1.36049
4.
1.02525
1.05101
1.07728
1.10408
1.15927
1.21665
1.27628
1.33823
1.40255
1.46933
5n
6.
1.03038
1.06152
1.09344
1.12616
1.19405
1.26532
1.34010
1.41852
1.50073
1.58687
9.
7.
1.03553
1.07214
1.10984
1.14869
1.22987
1.31593
1.40710
1.50363
1.60578
1.71382
8.
1.04071
1.08286
L.12649
1.17166
1.26677
1.36857
1.47746
1.59385
1.71819
1.85093
1.04591
1.09369
1.14339
1.19509
1.30477
1.42331
1.55133
1.68948
1.83846
1.99900
10
1.05114
1.10462
1.16054
121899
1.34392
1.48024
1.62889
1.79085
1.96715
2.15892
10
1.24337
1.26824
11
1.05640
I.11567
1.17795
1.38423
1.71034
1.79586
1.53945
1.89830
2.10485
2.33164
11
1.12683
1.13809
1.19562
1.21355
12
1.06168
1.42576
1.60103
2.01220
2.25219
2.51817
12
13
1.06699
1.29361
1.46853
1.66507
1.88565
2.13293
2.40985
2.71962
13
14
1.07232
1.14947
1.23176
1.31948
1.51259
1.73168
1.97993
2.26090
2.57853
2.93719
14
15
1.07768
1.16097
1.25023
1.34587
1.55797
1.80094
2.07893
2.39656
2.75903
3.17217
15
16
1.08307
1.17258
1.26899
1.37279
1.60471
1.87298
2.18287
2.54035
2.95216
3.42594
16
17
1.08849
1.18430
1.28802
1.40024
1.42825
1.65285
1.94790
2.29202
2.69277
3.15882
3.70002
17
18
1.09393
1.19615
1.30734
1.70243
2.02582
2.40662
2.85434
3.37993
3.99602
18
19
1.09940
1.20811
1.32695
1.45681
1.75351
2.10685
2.52695
3.02560
3.61653
4.31570
19
20
1.10490
1.22019
1.34686
1.48595
1.80611
2.19112
2.65330
3.20714
3.86968
4.66096
20
21
1.11042
1.23239
1.36706
1.51567
3.39956
4.14056
5.03383
21
1.86029
1.91610
2.27877
2.78596
22
1.11597
1.24472
1.38756
154598
2.36992
2.92526
3.60354
4.43040
5.43654
22
23
1.12155
1.25716
1.57690
1.60844
1.40838
1.97359
2.46472
3.07152
3.81975
4.74053
5.87146
23
24
1.12716
1.26973
2.03279
4.04893
5.07237
5.42743
1.42950
2.56330
3.22510
6.34118
24
25
1.13280
1.28243
1.45095
1.64061
2.09378
2.66584
3.38635
4.29187
6.84848
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
L18000
1.09000
1.18810
1.10000
1.11000
1.12000
1.13000
1.14000
L.15000
1.16000
1.17000
2
1.21000
1.23210
1.25440
1.27690
1.29960
1.32250
1.34560
1.36890
1.39240
1.29503
1.33100
1,48154
3.
36763
1.51807
1.40493
1.44290
1.52088
1.56090
1.60161
1.64303
4.
1.41158
1.46410
157352
1.63047
1.68896
1.74901
1.81064
L.87389
1.93878
4.
1.53862
1.61051
1.68506
1.76234
1.84244
1.92541
2.01136
2.10034
2.19245
2.28776
5.
1.67710
1.77156
1.87041
1.97382
2.08195
2.19497
2.31306
2.43640
2.56516
2.69955
6.
1.82804
1.94872
2.07616
2.21068
2.35261
2.50227
2.66002
2.82622
3.00124
3. I8547
7.
8.
1.99256
2.14359
2.30454
2.47596
2.65844
2.85259
3.05902
3.27841
3.51145
3.75886
2.17189
2.35795
2.55804
2.77308
3.00404
3.25195
3.51788
3,80296
4.10840
4.43545
10
2.36736
2.59374
2.83942
3.10585
3.39457
3.70722
4.04556
4.41144
4.80683
5.23384
10
11
2.58043
2.85312
3.15176
3.47855
3.83586
4.22623
4.65239
-5.11726
5.62399
6.17593
4.33452
4.81790
5.49241
12
2.81266
3.13843
3.49845
3.89598
5.35025
5.93603
6.58007
7.28759
12
13
3.06580
3.45227
3.88328
4.36349
4.89801
6.15279
6.88579
7.69868
8.59936
13
4.88714
5.47357
14
3.34173
3.79750
4.31044
5.53475
6.26135
7.07571
7.98752
9.00745 10.14724
14
15
3.64248
4.17725
4.78459
6.25427
7.13794
8.13706
9.26552
10.53872
11.97375
15
4.59497
5.05447
6.13039
6.86604
5.31089
7.06733
8.13725
9.35762
10.74800
12.33030
14.12902
16
3.97031
4.32763
16
17
5.89509
7.98608
9.27646
10.76126
12.46768
14.42646
16.67225
17
9.02427
10.19742
11.52309
18
4.71712
5.55992
6.54355
7.68997
10.57317
12.37545
14.46251
16.87895
19.67325
18
19
5.14166
6.11591
7.26334
861276
12.05569
14.23177
16.77652
19.74838
23.21444
19
20
5,60441
6.72750
8.06231
9.64629
13.74349
16.36654
19.46076
23.10560
27.39303
20
18.82152
22.57448
27.03355
31.62925
32.32378
21
6.1088I
6.65860
21
7.40025
8.94917
10.80385
13.02109
15.66758
17.86104
26.18640
8.14027
8.95430
22
9.93357
12.10031
14.71383
21.64475
38.14206
22
16.62663
20.36158
23.21221
24.89146
28.62518
11.02627
30.37622
37.00623
45.00763
23
23
24
7.25787
7.911O8
13.55235
15.17863
17.00006
9.84973
12.23916
18.78809
35.23642
43.29729
53.10901
24
25
K.628
10.83471
13.58546
21.23054
26.46192
32.91895
40.87424
50.65783
62.66863
25
The values in Table 11-1 were generated by the formula FV (1-0 rounded to five decimal places, where i is the interest
rate per period and is the total number of periods
MacBook Ail
吕口
F3
D00
O00
F4
F6
F7
F8
F9
F10
F5
8.
Transcribed Image Text:TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest) Perlods 1% 1% 2% 3% 4% 5% 6% 7% 8% Perlods 1.00500 1.01000 1.01500 1.02000 1.03000 1.04000 1.05000 1.06000 1.07000 1.08000 2 1.01003 1.02010 1.03023 1.04040 1.06090 1.08160 1.10250 1.12360 1.14490 1.16640 1.01508 1.03030 1.04568 1.06121 1.09273 1.12486 1.15763 1.19102 1.22504 1.25971 3 4. 1.02015 1.04060 1.06136 1.08243 1.12551 1.16986 1.21551 1.26248 1.31080 1.36049 4. 1.02525 1.05101 1.07728 1.10408 1.15927 1.21665 1.27628 1.33823 1.40255 1.46933 5n 6. 1.03038 1.06152 1.09344 1.12616 1.19405 1.26532 1.34010 1.41852 1.50073 1.58687 9. 7. 1.03553 1.07214 1.10984 1.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.71382 8. 1.04071 1.08286 L.12649 1.17166 1.26677 1.36857 1.47746 1.59385 1.71819 1.85093 1.04591 1.09369 1.14339 1.19509 1.30477 1.42331 1.55133 1.68948 1.83846 1.99900 10 1.05114 1.10462 1.16054 121899 1.34392 1.48024 1.62889 1.79085 1.96715 2.15892 10 1.24337 1.26824 11 1.05640 I.11567 1.17795 1.38423 1.71034 1.79586 1.53945 1.89830 2.10485 2.33164 11 1.12683 1.13809 1.19562 1.21355 12 1.06168 1.42576 1.60103 2.01220 2.25219 2.51817 12 13 1.06699 1.29361 1.46853 1.66507 1.88565 2.13293 2.40985 2.71962 13 14 1.07232 1.14947 1.23176 1.31948 1.51259 1.73168 1.97993 2.26090 2.57853 2.93719 14 15 1.07768 1.16097 1.25023 1.34587 1.55797 1.80094 2.07893 2.39656 2.75903 3.17217 15 16 1.08307 1.17258 1.26899 1.37279 1.60471 1.87298 2.18287 2.54035 2.95216 3.42594 16 17 1.08849 1.18430 1.28802 1.40024 1.42825 1.65285 1.94790 2.29202 2.69277 3.15882 3.70002 17 18 1.09393 1.19615 1.30734 1.70243 2.02582 2.40662 2.85434 3.37993 3.99602 18 19 1.09940 1.20811 1.32695 1.45681 1.75351 2.10685 2.52695 3.02560 3.61653 4.31570 19 20 1.10490 1.22019 1.34686 1.48595 1.80611 2.19112 2.65330 3.20714 3.86968 4.66096 20 21 1.11042 1.23239 1.36706 1.51567 3.39956 4.14056 5.03383 21 1.86029 1.91610 2.27877 2.78596 22 1.11597 1.24472 1.38756 154598 2.36992 2.92526 3.60354 4.43040 5.43654 22 23 1.12155 1.25716 1.57690 1.60844 1.40838 1.97359 2.46472 3.07152 3.81975 4.74053 5.87146 23 24 1.12716 1.26973 2.03279 4.04893 5.07237 5.42743 1.42950 2.56330 3.22510 6.34118 24 25 1.13280 1.28243 1.45095 1.64061 2.09378 2.66584 3.38635 4.29187 6.84848 25 Periods 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% Periods L18000 1.09000 1.18810 1.10000 1.11000 1.12000 1.13000 1.14000 L.15000 1.16000 1.17000 2 1.21000 1.23210 1.25440 1.27690 1.29960 1.32250 1.34560 1.36890 1.39240 1.29503 1.33100 1,48154 3. 36763 1.51807 1.40493 1.44290 1.52088 1.56090 1.60161 1.64303 4. 1.41158 1.46410 157352 1.63047 1.68896 1.74901 1.81064 L.87389 1.93878 4. 1.53862 1.61051 1.68506 1.76234 1.84244 1.92541 2.01136 2.10034 2.19245 2.28776 5. 1.67710 1.77156 1.87041 1.97382 2.08195 2.19497 2.31306 2.43640 2.56516 2.69955 6. 1.82804 1.94872 2.07616 2.21068 2.35261 2.50227 2.66002 2.82622 3.00124 3. I8547 7. 8. 1.99256 2.14359 2.30454 2.47596 2.65844 2.85259 3.05902 3.27841 3.51145 3.75886 2.17189 2.35795 2.55804 2.77308 3.00404 3.25195 3.51788 3,80296 4.10840 4.43545 10 2.36736 2.59374 2.83942 3.10585 3.39457 3.70722 4.04556 4.41144 4.80683 5.23384 10 11 2.58043 2.85312 3.15176 3.47855 3.83586 4.22623 4.65239 -5.11726 5.62399 6.17593 4.33452 4.81790 5.49241 12 2.81266 3.13843 3.49845 3.89598 5.35025 5.93603 6.58007 7.28759 12 13 3.06580 3.45227 3.88328 4.36349 4.89801 6.15279 6.88579 7.69868 8.59936 13 4.88714 5.47357 14 3.34173 3.79750 4.31044 5.53475 6.26135 7.07571 7.98752 9.00745 10.14724 14 15 3.64248 4.17725 4.78459 6.25427 7.13794 8.13706 9.26552 10.53872 11.97375 15 4.59497 5.05447 6.13039 6.86604 5.31089 7.06733 8.13725 9.35762 10.74800 12.33030 14.12902 16 3.97031 4.32763 16 17 5.89509 7.98608 9.27646 10.76126 12.46768 14.42646 16.67225 17 9.02427 10.19742 11.52309 18 4.71712 5.55992 6.54355 7.68997 10.57317 12.37545 14.46251 16.87895 19.67325 18 19 5.14166 6.11591 7.26334 861276 12.05569 14.23177 16.77652 19.74838 23.21444 19 20 5,60441 6.72750 8.06231 9.64629 13.74349 16.36654 19.46076 23.10560 27.39303 20 18.82152 22.57448 27.03355 31.62925 32.32378 21 6.1088I 6.65860 21 7.40025 8.94917 10.80385 13.02109 15.66758 17.86104 26.18640 8.14027 8.95430 22 9.93357 12.10031 14.71383 21.64475 38.14206 22 16.62663 20.36158 23.21221 24.89146 28.62518 11.02627 30.37622 37.00623 45.00763 23 23 24 7.25787 7.911O8 13.55235 15.17863 17.00006 9.84973 12.23916 18.78809 35.23642 43.29729 53.10901 24 25 K.628 10.83471 13.58546 21.23054 26.46192 32.91895 40.87424 50.65783 62.66863 25 The values in Table 11-1 were generated by the formula FV (1-0 rounded to five decimal places, where i is the interest rate per period and is the total number of periods MacBook Ail 吕口 F3 D00 O00 F4 F6 F7 F8 F9 F10 F5 8.
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