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how much does she need to deposit today to cover the total cost of her visit?

how much does she need to deposit today to cover the total cost of her visit?

Essentials Of Investments
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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Jazelle Momba wants to visit her family in Zimbabwe in 2025, which is 7 years from now. She knows that it will cost approximately $8,100 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that compounds interest at 6% semiannually, how much does she need to deposit today to cover the total cost of her visit? (Use Table 12.3.) (Round your answer to the nearest dollar.)

Deposit  
TABLE 12.3 Present value of $1 at end of period Perlod 1% 14% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 9901 9852 9804 9709 9615 .9524 9434 9346 9259 .9174 9091 9803 .9707 .9612 9426 .9246 9070 8900 .8734 .8573 .8417 8264 9706 9563 9423 .9151 8890 .8638 8396 8163 7938 7722 7513 4 .9610 9422 .9238 .8885 8548 .8227 7921 7629 7350 7084 .6830 .9515 9283 .9057 8626 8219 .7835 7473 7130 .6806 .6499 .6209 .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 .4776 .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 28 .7568 .6591 .5744 .4371 .3335 2551 .1956 .1504 .1159 .0895 .0693 29 .7493 .6494 5631 .4243 3207 2429 .1846 .1406 .1073 .0822 .0630 30 7419 6398 .5521 4120 3083 2314 .1741 .1314 0994 .0754 .0573 35 .7059 5939 5000 3554 2534 .1813 .1301 .0937 .0676 .0490 .0356 40 .6717 5513 4529 .3066 2083 .1420 .0972 .0668 0460 .0318 .0221 Note: For more detalled tables, see your booklet, the Business Math Handbook. N 3 LO CO
Transcribed Image Text:TABLE 12.3 Present value of $1 at end of period Perlod 1% 14% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 9901 9852 9804 9709 9615 .9524 9434 9346 9259 .9174 9091 9803 .9707 .9612 9426 .9246 9070 8900 .8734 .8573 .8417 8264 9706 9563 9423 .9151 8890 .8638 8396 8163 7938 7722 7513 4 .9610 9422 .9238 .8885 8548 .8227 7921 7629 7350 7084 .6830 .9515 9283 .9057 8626 8219 .7835 7473 7130 .6806 .6499 .6209 .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 .4776 .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 28 .7568 .6591 .5744 .4371 .3335 2551 .1956 .1504 .1159 .0895 .0693 29 .7493 .6494 5631 .4243 3207 2429 .1846 .1406 .1073 .0822 .0630 30 7419 6398 .5521 4120 3083 2314 .1741 .1314 0994 .0754 .0573 35 .7059 5939 5000 3554 2534 .1813 .1301 .0937 .0676 .0490 .0356 40 .6717 5513 4529 .3066 2083 .1420 .0972 .0668 0460 .0318 .0221 Note: For more detalled tables, see your booklet, the Business Math Handbook. N 3 LO CO
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