Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years? Present value of $1 at end of period Period 1% 1½% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 .9901 .9852 .9804 .9709 .9615 .9524 .9434 .9346 .9259 .9174 .9091 2 .9803 .9707 .9612 .9426 .9246 .9070 .8900 .8734 .8573 .8417 .8264 3 .9706 .9563 .9423 .9151 .8890 .8638 .8396 .8163 .7938 .7722 .7513 4 .9610 .9422 .9238 .8885 .8548 .8227 .7921 .7629 .7350 .7084 .6830 5 .9515 .9283 .9057 .8616 .8219 .7835 .7473 .7130 .6806 .6499 .6209 6 .9420 .9145 .8880 .8375 .7903 .7462 .7050 .6663 .6302 .5963 .5645 7 .9327 .9010 .8706 .8131 .7599 .7107 .6651 .6227 .5835 .5470 .5132 8 .9235 .8877 .8535 .7894 .7307 .6768 .6274 .5820 .5403 .5019 .4665 9 .9143 .8746 .8368 .7664 .7026 .6446 .5919 .5439 .5002 .4604 .4241 10 .9053 .8617 .8203 .7441 .6756 .6139 .5584 .5083 .4632 .4224 .3855 11 .8963 .8489 .8043 .7224 .6496 .5847 .5268 .4751 .4289 .3875 .3505 12 .8874 .8364 .7885 .7014 .6246 .5568 .4970 .4440 .3971 .3555 .3186 13 .8787 .8240 .7730 .6810 .6006 .5303 .4688 .4150 .3677 .3262 .2897 14 .8700 .8119 .7579 .6611 .5775 .5051 .4423 .3878 .3405 .2992 .2633 15 .8613 .7999 .7430 .6419 .5553 .4810 .4173 .3624 .3152 .2745 .2394 16 .8528 .7880 .7284 .6232 .5339 .4581 .3936 .3387 .2919 .2519 .2176 17 .8444 .7764 .7142 .6050 .5134 .4363 .3714 .3166 .2703 .2311 .1978 18 .8360 .7649 .7002 .5874 .4936 .4155 .3503 .2959 .2502 .2120 .1799 19 .8277 .7536 .6864 .5703 .4746 .3957 .3305 .2765 .2317 .1945 .1635 20 .8195 .7425 .6730 .5537 .4564 .3769 .3118 .2584 .2145 .1784 .1486 21 .8114 .7315 .6598 .5375 .4388 .3589 .2942 .2415 .1987 .1637 .1351 22 .8034 .7207 .6468 .5219 .4220 .3418 .2775 .2257 .1839 .1502 .1228 23 .7954 .7100 .6342 .5067 .4057 .3256 .2618 .2109 .1703 .1378 .1117 24 .7876 .6995 .6217 .4919 .3901 .3101 .2470 .1971 .1577 .1264 .1015 25 .7798 .6892 .6095 .4716 .3751 .2953 .2330 .1842 .1460 .1160 .0923 26 .7720 .6790 .5976 .4637 .3607 .2812 .2198 .1722 .1352 .1064 .0839 27 .7644 .6690 .5859 .4502 .3468 .2678 .2074 .1609 .1252 .0976 .0763
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years? Present value of $1 at end of period Period 1% 1½% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 .9901 .9852 .9804 .9709 .9615 .9524 .9434 .9346 .9259 .9174 .9091 2 .9803 .9707 .9612 .9426 .9246 .9070 .8900 .8734 .8573 .8417 .8264 3 .9706 .9563 .9423 .9151 .8890 .8638 .8396 .8163 .7938 .7722 .7513 4 .9610 .9422 .9238 .8885 .8548 .8227 .7921 .7629 .7350 .7084 .6830 5 .9515 .9283 .9057 .8616 .8219 .7835 .7473 .7130 .6806 .6499 .6209 6 .9420 .9145 .8880 .8375 .7903 .7462 .7050 .6663 .6302 .5963 .5645 7 .9327 .9010 .8706 .8131 .7599 .7107 .6651 .6227 .5835 .5470 .5132 8 .9235 .8877 .8535 .7894 .7307 .6768 .6274 .5820 .5403 .5019 .4665 9 .9143 .8746 .8368 .7664 .7026 .6446 .5919 .5439 .5002 .4604 .4241 10 .9053 .8617 .8203 .7441 .6756 .6139 .5584 .5083 .4632 .4224 .3855 11 .8963 .8489 .8043 .7224 .6496 .5847 .5268 .4751 .4289 .3875 .3505 12 .8874 .8364 .7885 .7014 .6246 .5568 .4970 .4440 .3971 .3555 .3186 13 .8787 .8240 .7730 .6810 .6006 .5303 .4688 .4150 .3677 .3262 .2897 14 .8700 .8119 .7579 .6611 .5775 .5051 .4423 .3878 .3405 .2992 .2633 15 .8613 .7999 .7430 .6419 .5553 .4810 .4173 .3624 .3152 .2745 .2394 16 .8528 .7880 .7284 .6232 .5339 .4581 .3936 .3387 .2919 .2519 .2176 17 .8444 .7764 .7142 .6050 .5134 .4363 .3714 .3166 .2703 .2311 .1978 18 .8360 .7649 .7002 .5874 .4936 .4155 .3503 .2959 .2502 .2120 .1799 19 .8277 .7536 .6864 .5703 .4746 .3957 .3305 .2765 .2317 .1945 .1635 20 .8195 .7425 .6730 .5537 .4564 .3769 .3118 .2584 .2145 .1784 .1486 21 .8114 .7315 .6598 .5375 .4388 .3589 .2942 .2415 .1987 .1637 .1351 22 .8034 .7207 .6468 .5219 .4220 .3418 .2775 .2257 .1839 .1502 .1228 23 .7954 .7100 .6342 .5067 .4057 .3256 .2618 .2109 .1703 .1378 .1117 24 .7876 .6995 .6217 .4919 .3901 .3101 .2470 .1971 .1577 .1264 .1015 25 .7798 .6892 .6095 .4716 .3751 .2953 .2330 .1842 .1460 .1160 .0923 26 .7720 .6790 .5976 .4637 .3607 .2812 .2198 .1722 .1352 .1064 .0839 27 .7644 .6690 .5859 .4502 .3468 .2678 .2074 .1609 .1252 .0976 .0763
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 5CE
Related questions
Question
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually.
Amount needed | $ 60,000.00 |
---|---|
Length of time needed from today | 4 |
Interest | 12% |
Compounded | Semiannually |
Required:
Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following:
- Period used:
- Rate used:
- Factor used:
- What must Tony deposit today so he will have $60,000 in 4 years?
Present value of $1 at end of period
Period | 1% | 1½% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% |
---|---|---|---|---|---|---|---|---|---|---|---|
1 | .9901 | .9852 | .9804 | .9709 | .9615 | .9524 | .9434 | .9346 | .9259 | .9174 | .9091 |
2 | .9803 | .9707 | .9612 | .9426 | .9246 | .9070 | .8900 | .8734 | .8573 | .8417 | .8264 |
3 | .9706 | .9563 | .9423 | .9151 | .8890 | .8638 | .8396 | .8163 | .7938 | .7722 | .7513 |
4 | .9610 | .9422 | .9238 | .8885 | .8548 | .8227 | .7921 | .7629 | .7350 | .7084 | .6830 |
5 | .9515 | .9283 | .9057 | .8616 | .8219 | .7835 | .7473 | .7130 | .6806 | .6499 | .6209 |
6 | .9420 | .9145 | .8880 | .8375 | .7903 | .7462 | .7050 | .6663 | .6302 | .5963 | .5645 |
7 | .9327 | .9010 | .8706 | .8131 | .7599 | .7107 | .6651 | .6227 | .5835 | .5470 | .5132 |
8 | .9235 | .8877 | .8535 | .7894 | .7307 | .6768 | .6274 | .5820 | .5403 | .5019 | .4665 |
9 | .9143 | .8746 | .8368 | .7664 | .7026 | .6446 | .5919 | .5439 | .5002 | .4604 | .4241 |
10 | .9053 | .8617 | .8203 | .7441 | .6756 | .6139 | .5584 | .5083 | .4632 | .4224 | .3855 |
11 | .8963 | .8489 | .8043 | .7224 | .6496 | .5847 | .5268 | .4751 | .4289 | .3875 | .3505 |
12 | .8874 | .8364 | .7885 | .7014 | .6246 | .5568 | .4970 | .4440 | .3971 | .3555 | .3186 |
13 | .8787 | .8240 | .7730 | .6810 | .6006 | .5303 | .4688 | .4150 | .3677 | .3262 | .2897 |
14 | .8700 | .8119 | .7579 | .6611 | .5775 | .5051 | .4423 | .3878 | .3405 | .2992 | .2633 |
15 | .8613 | .7999 | .7430 | .6419 | .5553 | .4810 | .4173 | .3624 | .3152 | .2745 | .2394 |
16 | .8528 | .7880 | .7284 | .6232 | .5339 | .4581 | .3936 | .3387 | .2919 | .2519 | .2176 |
17 | .8444 | .7764 | .7142 | .6050 | .5134 | .4363 | .3714 | .3166 | .2703 | .2311 | .1978 |
18 | .8360 | .7649 | .7002 | .5874 | .4936 | .4155 | .3503 | .2959 | .2502 | .2120 | .1799 |
19 | .8277 | .7536 | .6864 | .5703 | .4746 | .3957 | .3305 | .2765 | .2317 | .1945 | .1635 |
20 | .8195 | .7425 | .6730 | .5537 | .4564 | .3769 | .3118 | .2584 | .2145 | .1784 | .1486 |
21 | .8114 | .7315 | .6598 | .5375 | .4388 | .3589 | .2942 | .2415 | .1987 | .1637 | .1351 |
22 | .8034 | .7207 | .6468 | .5219 | .4220 | .3418 | .2775 | .2257 | .1839 | .1502 | .1228 |
23 | .7954 | .7100 | .6342 | .5067 | .4057 | .3256 | .2618 | .2109 | .1703 | .1378 | .1117 |
24 | .7876 | .6995 | .6217 | .4919 | .3901 | .3101 | .2470 | .1971 | .1577 | .1264 | .1015 |
25 | .7798 | .6892 | .6095 | .4716 | .3751 | .2953 | .2330 | .1842 | .1460 | .1160 | .0923 |
26 | .7720 | .6790 | .5976 | .4637 | .3607 | .2812 | .2198 | .1722 | .1352 | .1064 | .0839 |
27 | .7644 | .6690 | .5859 | .4502 | .3468 | .2678 | .2074 | .1609 | .1252 | .0976 | .0763 |
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