In an attempt to have funds for a down payment, Jan Carlson plans to save $3,600 a year for the next five years. With an interest rate of 5 percent, what amount will Jan have available for a down payment after the five years? Use Exhibit 1-Bi (Round time value factor to 3 decimal places and final answer to 2 decimal places.) ...... Down payment
In an attempt to have funds for a down payment, Jan Carlson plans to save $3,600 a year for the next five years. With an interest rate of 5 percent, what amount will Jan have available for a down payment after the five years? Use Exhibit 1-Bi (Round time value factor to 3 decimal places and final answer to 2 decimal places.) ...... Down payment
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:In an attempt to have funds for a down payment, Jan Carlson plans to save $3,600 a year for the next five years. With an interest rate
of 5 percent, what amount will Jan have available for a down payment after the five years? Use Exhibit 1-B (Round time value factor to
3 decimal places and final answer to 2 decimal places.)
Down payment
Transcribed Image Text:Exhibit 1-B Future value (compounded sum) of $1 paid in at the end of each period for a given number of time periods (an annuity)
1%
1.000
3%
1.000
6%
1.000
2.050
3.153
4.310
5.526
6%
1.000
2.060
3.184
4.375
5.637
7%
1.000
2.070
3.215
4.440
5.751
Period
2%
1.000
2.020
3.060
4.122
5.204
9%
1.000
2.090
3.278
4.573
5.985
4%
8%
10%
11%
1.000
2.040
3.122
4.246
1.000
1.000
1.000
2.100
3.310
4.641
6.105
7.716
2.110
3.342
4.710
2.010
2.030
2.080
3
3.030
4.060
5.101
6.152
3.091
4.184
5.309
6.468
3.246
4
4.506
5.867
7.336
5.416
6.228
6.308
6.633
6.802
6.975
7.153
7.523
7.913
7.434
7.898
9.214
10.583
12.006
8.142
9.549
11.027
12.578
14.207
8.654
10.260
9.783
11.859
14.164
7
7.214
7.662
8.394
8.923
9.200
9.487
8.286
9.369
8.892
10.159
11.464
10.637
12.488
11.028
13.021
11.436
13.579
15.937
18.531
8.583
9.897
11.491
9.755
10.950
12.169
9.
11.978
13.181
14.972
16.870
18.882
14.487
16.722
19.561
10
10.462
13.816
15.193
11.567
12.808
14.192
15.618
17.086
11
13.486
15.784
16.645
17.560
12
12.683
13.412
15.026
15.917
17.888
18.977
20.141
21.384
24.523
27.975
31.772
35.950
40.545
45.599
51.159
57.275
98.347
22.713
14.680
15.974
17.713
19.599
20.141
21.495
24.215
13
22.953
26.212
30.095
13.809
16.627
18.292
21.015
23.276
25.673
28.213
30.906
33.760
14
14.947
22.550
26.019
16.097
17.258
18.430
19.615
15
17.293
18.599
20.024
21.579
25.129
27.152
29.361
34.405
20.157
21.762
23.414
21.825
23.698
25.645
27.671
29.778
23.657
25.840
28.132
27.888
30.840
33.999
30.324
33.750
37.450
33.003
36.974
41.301
46.018
51.160
84.701
136.308
337.882
815.084
39.190
44.501
50.396
56.939
64.203
114.413
16
18.639
20.012
21.412
17
18
19
20.811
22.841
25.117
30.539
37.379
41.446
22.019
45.762
26.870
36.459
47.575
20
24.297
33.066
36.786
40.995
25
63.249
54.865
79.058
154.762
290.336
28.243
32.030
41.646
47.727
73.106
56.085
95.026
152.667
66.439
120.800
209.348
94.461
199.635
406.529
30
34.785
40.568
113.283
164.494
199.021
48.886
64.463
60.402
84.579
259.057
573.770
442.593
1163.909
40
75.401
581.826
112.797
1668.771
50
13%
15%
1.000
2.150
3.473
4.993
6.742
Period
12%
14%
16%
17%
18%
19%
20%
25%
30%
1.000
2.180
1.000
1.000
1.000
2.140
3.440
4.921
6.610
8.536
1.000
2.160
3.506
5.066
1.000
2.250
1.000
2.200
3.640
5.368
7.442
9.930
12.916
16.499
20.799
25.959
32.150
39.581
1.000
1.000
1.000
2.300
2.190
3.606
2
2.120
2.130
2.170
3.407
4.850
6.480
3
3.374
3.539
3.572
3.813
3.990
4
4.779
5.141
5.215
5.291
5.766
6.187
6.353
8.115
10.089
12.300
14.776
17.549
20.655
6.877
7.014
7.154
7.297
8.207
9.043
9.683
12.523
6.
8.323
8.754
8.977
9.207
9.442
11.259
12.756
11.772
14.773
18.285
22.393
27.200
32.824
39.404
12.142
15.327
19.086
23.521
11.067
13.727
7
10.405
10.730
11.414
15.073
17.583
14.240
17.519
21.321
25.733
30.850
36.786
23.858
32.015
42.619
56.405
12.757
13.233
19.842
25.802
33.253
42.566
54.208
68.760
86.949
8
15.902
16.085
19.337
19.923
24.709
30.404
15.416
16.786
10
18.420
20.304
11
21.814
23.045
24.349
28.755
29.002
34.352
12
24.133
25.650
27.271
34.931
37.180
74.327
48.497
59.196
72.035
87.442
105.931
13
28.029
29.985
32.089
42.219
45.244
97.625
14
32.393
34.883
37.581
40.505
43.672
47.103
50.818
54.841
127.913
66.261
79.850
96.022
115.266
138.166
37.280
42.753
47.580
51.660
60.925
71.673
56.110
66.649
78.979
93.406
110.285
15
40.417
43.842
60.965
109.687
167.286
138.109
173.636
218.045
273.556
16
46.672
50.980
55.717
72.939
218.472
17
65.075
75.836
88.212
59.118
87.068
285.014
371.518
48.884
53.739
61.725
70.749
68.394
78.969
103.740
123.414
146.628
342.603
18
55.750
84.141
128.117
63.440
72.052
133.334
98.603
115.380
249.214
530.312
19
154.740
483.973
20
25
80.947
91.025
102.444
130.033
165.418
186.688
342.945
630.165
292.105
212.793
434.745
1779.090
7217.716
402.042
966.712
5529.829
31515.340
155.620
181.871
471.981
1054.791
2348.803
293.199
1013.704
3459.507
3227.174
30088.655
280255.693 1659760.743
30
241.333
356.787
647.439
790.948
1181.882
8729.985
1342.025
4994.521
3134.522
15089.502
7343.858
45497.191
40
767.091
2360.757
4163.213
120392.883
50
2400.018
10435.649
21813.094
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