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You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.)

You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.)

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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You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.) 

Periods 9% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 10% 11% 14% 12% 13% 15% 0.89286 0.88496 0.87719 0.86957 0.90909 0.91743 0.90090 0.84168 0.82645 0.81162 0.73119 0.79719 0.71178 0.78315 0.76947 0.75614 0.69305 0.67497 0.65752 0.77218 0.75131 0.70843 0.68301 0.65873 0.63552 0.64993 0.62092 0.59345 0.56743 21 22 23 24 25 0.38753 0.35049 0.31728 0.28748 0.35553 0.31863 0.28584 0.32618 0.28966 0.29925 0.26333 0.27454 0.23939 0.59627 0.56447 0.53464 0.50663 0.48032 0.45559 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 0.50187 0.46651 0.43393 0.40388 0.37616 0.35056 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 0.35218 0.32197 0.29459 0.26974 0.42241 0.38554 0.26070 0.25668 0.23071 0.20416 0.20462 0.18068 0.15989 0.25751 0.22917 0.23199 0.20900 0.18270 0.61332 0.54276 0.25187 0.21763 0.18829 0.16312 0.23107 0.19784 0.16963 0.14564 0.21199 0.17986 0.15282 0.13004 0.19449 0.16351 0.13768 0.17843 0.14864 0.12403 0.11611 0.10367 16% 17% 0.86207 0.85470 0.74316 0.73051 0.64066 0.62437 0.59208 0.57175 0.55229 0.53365 0.51937 0.49718 0.47611 0.45611 0.14150 0.12522 0.11081 0.09806 0.08678 0.23662 0.20756 0.18207 0.15971 0.14010 18% 0.84746 0.71818 0.60863 0.51579 0.43711 0.43233 0.41044 0.38984 0.37043 0.37594 0.35383 0.33320 0.31393 0.32690 0.30503 0.28478 0.26604 0.28426 0.26295 0.24340 0.22546 0.24718 0.22668 0.20804 0.19106 0.12289 0.10780 0.09456 0.08081 0.06914 0.08295 0.07276 0.21494 0.19542 0.17781 0.18691 0.16846 0.15197 0.16253 0.14523 0.12989 0.11629 0.14133 0.12520 0.11102 0.09855 0.12289 0.10793 0.09489 0.08352 0.16192 0.13722 0.10686 0.09304 0.08110 0.07078 0.09293 0.08021 0.06932 0.05998 0.05925 0.05083 0.04308 0.07027 0.05961 0.05064 0.06110 0.05139 0.04328 0.03651 0.13513 0.16370 0.15018 0.12285 0.11174 0.09256 0.07680 0.06383 0.05313 0.04430 0.03699 0.03094 0.10067 0.08264 0.06796 0.05599 0.04620 0.03819 0.03162 0.02622 0.13778 0.11168 0.09069 0.07379 0.06014 0.04911 0.04017 0.03292 0.02702 0.02222 0.12640 0.10153 0.08170 0.06588 0.05323 0.04308 0.03493 0.02838 0.02310 0.01883 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.03038 0.01596 0.02447 0.01974 Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Transcribed Image Text:Periods 9% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 10% 11% 14% 12% 13% 15% 0.89286 0.88496 0.87719 0.86957 0.90909 0.91743 0.90090 0.84168 0.82645 0.81162 0.73119 0.79719 0.71178 0.78315 0.76947 0.75614 0.69305 0.67497 0.65752 0.77218 0.75131 0.70843 0.68301 0.65873 0.63552 0.64993 0.62092 0.59345 0.56743 21 22 23 24 25 0.38753 0.35049 0.31728 0.28748 0.35553 0.31863 0.28584 0.32618 0.28966 0.29925 0.26333 0.27454 0.23939 0.59627 0.56447 0.53464 0.50663 0.48032 0.45559 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 0.50187 0.46651 0.43393 0.40388 0.37616 0.35056 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 0.35218 0.32197 0.29459 0.26974 0.42241 0.38554 0.26070 0.25668 0.23071 0.20416 0.20462 0.18068 0.15989 0.25751 0.22917 0.23199 0.20900 0.18270 0.61332 0.54276 0.25187 0.21763 0.18829 0.16312 0.23107 0.19784 0.16963 0.14564 0.21199 0.17986 0.15282 0.13004 0.19449 0.16351 0.13768 0.17843 0.14864 0.12403 0.11611 0.10367 16% 17% 0.86207 0.85470 0.74316 0.73051 0.64066 0.62437 0.59208 0.57175 0.55229 0.53365 0.51937 0.49718 0.47611 0.45611 0.14150 0.12522 0.11081 0.09806 0.08678 0.23662 0.20756 0.18207 0.15971 0.14010 18% 0.84746 0.71818 0.60863 0.51579 0.43711 0.43233 0.41044 0.38984 0.37043 0.37594 0.35383 0.33320 0.31393 0.32690 0.30503 0.28478 0.26604 0.28426 0.26295 0.24340 0.22546 0.24718 0.22668 0.20804 0.19106 0.12289 0.10780 0.09456 0.08081 0.06914 0.08295 0.07276 0.21494 0.19542 0.17781 0.18691 0.16846 0.15197 0.16253 0.14523 0.12989 0.11629 0.14133 0.12520 0.11102 0.09855 0.12289 0.10793 0.09489 0.08352 0.16192 0.13722 0.10686 0.09304 0.08110 0.07078 0.09293 0.08021 0.06932 0.05998 0.05925 0.05083 0.04308 0.07027 0.05961 0.05064 0.06110 0.05139 0.04328 0.03651 0.13513 0.16370 0.15018 0.12285 0.11174 0.09256 0.07680 0.06383 0.05313 0.04430 0.03699 0.03094 0.10067 0.08264 0.06796 0.05599 0.04620 0.03819 0.03162 0.02622 0.13778 0.11168 0.09069 0.07379 0.06014 0.04911 0.04017 0.03292 0.02702 0.02222 0.12640 0.10153 0.08170 0.06588 0.05323 0.04308 0.03493 0.02838 0.02310 0.01883 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.03038 0.01596 0.02447 0.01974 Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
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