Steve Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Steve has recently come into an inheritance of $421,000. He estimates that the boat he wants will cost $344,700 when he retires in 6 years. Click here to view factor tables How much of his inheritance must he invest at an annual rate of 15% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) Investment amount $ 149182
Steve Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Steve has recently come into an inheritance of $421,000. He estimates that the boat he wants will cost $344,700 when he retires in 6 years. Click here to view factor tables How much of his inheritance must he invest at an annual rate of 15% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) Investment amount $ 149182
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:8%
1.08000
1.16640
1.25971
1.36049
1.46933
1.58687
1.71382
1.85093
1.99900
2.15892
2.33164
2.51817
2.71962
2.93719
3.17217
3.42594
3.70002
3.99602
4.31570
4.66096
5.03383
5.43654
5.87146
6.34118
6.84847
7.39635
7.98806
8.62711
9.31727
10.06266
10.86767
11.73708
12.67605
13.69013
14.78534
15.96817
17.24563
18.62528
20.11530
21.72452
9%
1.09000
1.18810
1.29503
1.41158
1.53862
1.67710
1.82804
1.99256
2.17189
2.36736
2.58043
2.81267
3.06581
3.34173
3.64248
3.97031
4.32763
4.71712
5.14166
5.60441
6.10881
6.65860
7.25787
7.91108
8.62308
9.39916
10.24508
11.16714
12.17218
13.26768
14.46177
15.76333
17.18203
18.72841
20.41397
22.25123
24.25384
26.43668
28.81598
31.40942
10%
1.10000
1.21000
1.33100
1.46410
1.61051
1.77156
1.94872
2.14359
2.35795
2.59374
2.85312
3.13843
3.45227
3.79750
4.17725
4.59497
5.05447
5.55992
6.11591
6.72750
7.40025
8.14028
8.95430
9.84973
10.83471
11.91818
13.10999
14.42099
15.86309
17.44940
19.19434
21.11378
23.22515
25.54767
28.10244
30.91268
34.00395
37.40434
41.14479
45.25926
11%
1.11000
1.23210
1.36763
1.51807
1.68506
1.87041
2.07616
2.30454
2.55803
2.83942
3.15176
3.49845
3.88328
4.31044
4.78459
5.31089
5.89509
6.54355
7.26334
8.06231
8.94917
9.93357
11.02627
12.23916
13.58546
15.07986
16.73865
18.57990
20.62369
22.89230
25.41045
28.20560
31.30821
34.75212
38.57485
42.81808
47.52807
52.75616
58.55934
65.00087
12%
1.12000
1.25440
1.40493
1.57352
1.76234
1.97382
2.21068
2.47596
2.77308
3.10585
3.47855
3.89598
4.36349
4.88711
5.47357
6.13039
6.86604
7.68997
8.61276
9.64629
10.80385
12.10031
13.55235
15.17863
17.00000
19.04007
21.32488
23.88387
26.74993
29.95992
33.55511
37.58173
42.09153
47.14252
52.79962
59.13557
66.23184
74.17966
83.08122
93.05097
TABLE 6.1 Future Value of 1
15%
1.15000
1.32250
1.52088
1.74901
2.01136
2.31306
2.66002
3.05902
3.51788
4.04556
4.65239
5.35025
6.15279
7.07571
8.13706
9.35762
10.76126
12.37545
14.23177
16.36654
18.82152
21.64475
24.89146
28.62518
32.91895
37.85680
43.53532
50.06561
57.57545
66.21177
76.14354
87.56507
100.69983
115.80480
133.17552
153.15185
176.12463
202.54332
232.92482
267.86355
(n)
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Transcribed Image Text:Steve Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Steve has recently come into an inheritance of
$421,000. He estimates that the boat he wants will cost $344,700 when he retires in 6 years.
Click here to view factor tables
How much of his inheritance must he invest at an annual rate of 15% (compounded annually) to buy the boat at retirement? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.)
Investment amount
$
149182
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