Sonia wants to have $15,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.)
Sonia wants to have $15,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (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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Sonia wants to have $15,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.)
Transcribed Image Text:TABLE 11-2
Present Value Table (Present Value of $1 at Compound Interest)
Periods
1%
1,%
2%
3%
4%
5%
6%
7%
8%
Periods
1
0.99502
0.99010
0.98522
0.98039
0.97087
0.96154
0.95238
0.94340
0.93458
0.92593
1
2
0.99007
0.98030
0.97066
0.96117
0.94260
0.92456
0.90703
0.89000
0.87344
0.85734
0.98515
0.97059
0.95632
0.94232
0.91514
0.88900
0.86384
0.83962
0.81630
0.79383
3
4
0.98025
0.96098
0.94218
0.92385
0.88849
0.85480
0.82270
0.79209
0.76290
0.73503
4
5
0.97537
0.95147
0.92826
0.90573
0.86261
0.82193
0.78353
0.74726
0.71299
0.68058
6
0.97052
0.94205
0.91454
0.88797
0.83748
0.79031
0.74622
0.70496
0.66634
0.63017
6.
7
0.96569
0.93272
0.90103
0.87056
0.81309
0.75992
0.71068
0.66506
0.62275
0.58349
7
8
0.96089
0.92348
0.88771
0.85349
0.78941
0.73069
0.67684
0.62741
0.58201
0.54027
8
0.95610
0.91434
0.87459
0.83676
0.76642
0.70259
0.64461
0.59190
0.54393
0.50025
9
10
0.95135
0.90529
0.86167
0.82035
0.74409
0.67556
0.61391
0.55839
0.50835
0.46319
10
11
0.94661
0.89632
0.84893
0.80426
0.72242
0.64958
0.58468
0.52679
0.47509
0.42888
11
12
0.94191
0.88745
0.83639
0.78849
0.70138
0.62460
0.55684
0.49697
0.44401
0.39711
12
13
0.93722
0.87866
0.82403
0.77303
0.68095
0.60057
0.53032
0.46884
0.41496
0.36770
13
14
0.93256
0.86996
0.81185
0.75788
0.66112
0.57748
0.50507
0.44230
0.38782
0.34046
14
15
0.92792
0.86135
0.79985
0.74301
0.64186
0.55526
0.48102
0.41727
0.36245
0.31524
15
16
0.92330
0.85282
0.78803
0.72845
0.62317
0.53391
0.45811
0.39365
0.33873
0.29189
16
17
0.91871
0.84438
0.77639
0.71416
0.60502
0.51337
0.43630
0.37136
0.31657
0.27027
17
18
0.91414
0.83602
0.76491
0.70016
0.58739
0.49363
0.41552
0.35034
0.29586
0.25025
18
19
0.90959
0.82774
0.75361
0.68643
0.57029
0.47464
0.39573
0.33051
0.27651
0.23171
19
20
0.90506
0.81954
0.74247
0.67297
0.55368
0.45639
0.37689
0.31180
0.25842
0.21455
20
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