You estimate that you can save $8,800 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 5 percent? Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value
You estimate that you can save $8,800 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 5 percent? Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future 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:Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods
Period
1%
1.010
1.020
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
1.020
1.040
1.040
1.082
1.125
1.170
1.217
1.050
1.103
1.158
1.216
1.276
1.340
1.407
1.030
1.061
1.060
1.124
1.070
1.145
1.225
1.311
1.403
1.110
1.232
1.368
1
1.080
1.090
1.100
1.166
1.260
1.360
1.469
1.188
1.210
3
1.030
1.061
1.093
1.191
1.295
1.331
1.041
1.126
1.159
1.194
4
1.082
1.262
1.412
1.464
1.518
5
1.104
1.126
1.338
1.611
1.772
1.685
1.870
1.051
1.539
1.062
1.072
6.
1.265
1.419
1.501
1.587
1.677
1.316
1.949
2.144
1.149
1.230
1.504
1.606
1.714
1.828
1.993
2.076
2.305
1.594
1.689
8
1.083
1.172
1.267
1.369
1.477
1.718
1.851
1.305
1.344
1.384
2.358
1.423
1.480
1.094
1.195
1.551
1.838
1.999
2.172
2.558
2.839
3.152
10
1.105
1.219
1.629
1.791
1.967
2.159
2.367
2.594
1.710
2.105
2.252
2.410
11
1.116
1.243
1.539
1.898
2.332
2.580
2.853
12
1.127
1.268
1.426
1.601
1.796
2.012
2.518
2.813
3.138
3.498
1.138
1.149
2.720
3.452
3.797
4.177
4.595
5.054
5.560
3,883
1.469
1.513
1.665
1.732
1.886
1.980
2.079
13
1.294
2.133
3.066
1.319
1.346
3.342
3.642
3.970
4.328
4.717
5.142
5.604
8.623
13.268
31.409
74.358
4.310
4.785
5.311
5.895
14
2.261
2.579
2.937
2.397
2.759
3.172
3.426
3.700
3.996
4.316
4.661
6.848
15
1.161
1.558
1.801
1.173
1.184
16
1.373
1.605
1.873
2.183
2.540
2.952
1.948
2.026
3.159
3.380
3.617
3.870
5.427
17
1.400
1.653
2.292
2.693
2.407
2.854
3.026
3.207
18
1.196
1.428
1.702
6.544
1.754
1.806
2.094
6.116
6.727
10.835
1.208
7.263
2.107
2.191
2.666
19
1.457
2.527
2.653
3.386
4.322
20
1.220
1.486
8.062
1.282
4.292
5.743
25
1.641
13.585
30
1.348
1.811
2.427
3.243
7.612
10.063
17.449
22.892
65.001
184.565
40
1.489
2.208
3.262
4.801
7.040
10.286
14.974
21.725
45.259
50
1.645
2.692
4.384
7.107
11.467
18.420
29.457
46.902
117.391
Period
12%
13%
1.130
1.277
1.443
1.630
1.842
14%
15%
16%
17%
18%
19%
20%
25%
30%
1.160
1.346
1.561
1.120
1.140
1.150
1.323
1.190
1.416
1
1.170
1.180
1.200
1.250
1.300
1.254
1.300
1.369
1.392
1.440
1.563
1.690
3
1.405
1.482
1.521
1.602
1.643
1.685
1.728
1.953
2.197
1.574
1.762
1.749
1.939
2.288
2.700
2.005
2.386
2.840
3.379
4.021
4.785
5.695
2.074
2.488
2.441
3.052
4
1.689
1.811
1.874
2.856
1.925
2.100
2.436
2.011
2.192
3.713
2.313
2.660
3.059
3.518
6.
1.974
2.082
2.195
2.565
2.986
3.815
4.827
2.211
2.476
2.773
3.106
3.479
3.896
4.363
7
2.353
2.502
2.826
3.001
3.185
3.583
4.768
6.275
3.278
3.803
4.411
8
2.658
2.853
3.511
3.759
4.300
5.960
8.157
3.004
3.395
3.252
3.707
4.226
4.818
5.492
7.451
4.108
4.807
4.435
5.234
5.160
10.604
13.786
17.922
10
4.046
6.192
9.313
11
3.836
4.652
5.117
5.624
6.176
6.777
7.430
11.642
5.350
6.153
7.076
8.137
5.936
6.886
7.988
7.288
8.599
10.147
11.974
12
4.335
6.580
8.064
8.916
14.552
23.298
7.699
10.699
30.288
9.596
11.420
13.590
13
4.898
18.190
14
4.887
5.535
6.261
9.007
12.839
22.737
39.374
10.539
15.407
28.422
51.186
5.474
6.130
6.866
15
6.254
7.138
9.266
10.748
12.468
14.463
16.777
16
7.067
8.137
9.358
12.330
14.129
16.172
18.488
35.527
66.542
17
7.986
9.024
10.197
11.523
10.761
12.375
14.232
14.426
16.879
16.672
19.673
23.214
27.393
19.244
22.901
27.252
32.429
77.388
22.186
26.623
31.948
38.338
95.396
237.376
44.409
55.511
9.276
86.504
18
7.690
10.575
112.455
12.056
13.743
19.748
23.106
69.389
86.736
264.698
19
8.613
146.192
20
9.646
16.367
19.461
190.050
25
17.000
29.960
93.051
289.002
32.919
66.212
21.231
26.462
40.874
50.658
62.669
705.641
39.116
50.950
85.850
378.721
1670.704
111.065
533.869
2566.215
807.794
7523.164
70064.923
30
143.371
184.675
2619.996
132.782
450.736
267.864
1083.657
750.378
3927.357
1051.668
5988.914
1469.772
9100.438
40
188.884
36118.865
50
700.233
497929.223
Transcribed Image Text:You estimate that you can save $8,800 by selling your home yourself rather than using a real estate agent. What would be the future
value of that amount if invested for five years at 5 percent? Use Exhibit 1-A. (Round time value factor to 3 decimal places and final
answer to 2 decimal places.)
Future value
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