Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is : (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)
Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is : (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)
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
Craig Daniel opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Craig deposits an additional $50,000 that is also compounded semiannually at 12%. At the end of six years, the balance in Craig Daniel's account is : (due to rounding in the order of calculations, select the answer within $1 or $2 dollars)
Transcribed Image Text:Future value of $1 at compound interest
Perlod
1%
14%
2%
3%
4%
5%
6%
7%
8%
10%
%6
10100
10150
1.0200
10300
1.0400
1.0500
10600
10700
10800
1.0900
11000
2
10201
1.0302
10404
10609
1.0816
11025
11236
13449
11664
11881
1.2100
3.
1.0303
1.0457
1.0612
1.0927
11249
11576
11910
1.2250
12597
1.2950
13310
4.
10406
1.0614
1.0824
11255
1.1699
1.2155
12625
1.3108
13605
1.4116
1.4641
1.0510
1.0773
1.1041
11593
1.2167
1.2763
13382
1.4026
1.4693
1.5386
16105
6.
1.0615
1.0934
11262
1.1941
1.2653
13401
14185
1.5007
15869
1.6771
17716
7.
1.0721
1.1098
1.1487
12299
1.3159
14071
15036
16058
17138
1.8280
1.9487
1.0829
1.1265
11717
1.2668
1.3686
14775
15938
17182
18509
1.9926
21436
1.0937
1.1434
11951
13048
1.4233
15513
16895
1.8385
19990
21719
2.3579
10
13046
1.1605
1.2190
13439
1.4802
16289
17908
19672
2.1589
2.3674
2.5937
11
1.1157
1.1780
1.2434
13842
15395
17103
18983
21049
2.3316
2.5804
2.8531
12
1.1268
1.1960
1.2682
14258
1.6010
17959
2.0122
2.2522
2.5182
2.8127
3.1384
13
11381
1.2135
1.2936
1.4685
1.6651
1.8856
2.1329
2.4098
2.7196
3.0658
3.4523
14
1.1495
1.2318
1.3195
15126
17317
1.9799
2.2609
2.5785
2.9372
3.3417
37975
15
1.1610
1.2502
1.3459
15580
1.8009
20789
2.3966
27590
3.1722
3.6425
41772
16
1.1726
1.2690
1.3728
16047
1.8730
21829
2.5404
2.9522
3.4259
3.9703
4.5950
17
1.1843
1.2880
1.4002
16528
1.9479
2.2920
2.6928
3.1588
3.7000
4.3276
5.0545
18
1.1961
1.3073
1.4282
17024
2.0258
2.4066
2.8543
3.3799
3.9960
4.7171
5.5599
19
1.2081
1.3270
1.4568
17535
21068
25270
3.0256
3.6165
4.3157
5.1417
61159
20
1.2202
1.3469
1.4859
18061
21911
26533
3.2071
3.8697
4.6610
5.6044
67275
21
1.2324
1.3671
1.5157
1.8603
2.2788
27860
3.3996
43406
5.0338
6.1088
7.4002
22
1.2447
1.3876
15460
19161
2.3699
2.9253
3.6035
4.4304
5.4365
6.6586
81403
23
1.2572
1,4084
15769
19736
2.4647
3.0715
3.8197
47405
5.8715
7.2579
8.9543
24
1.2697
1.4295
1.6084
2.0328
2.5633
3.2251
4.0489
5.0724
6.3412
7.911
9.8497
25
1.2824
14510
16406
20938
2.6658
3.3864
4.2919
5.4274
6.8485
8.6231
10.8347
26
1.2953
1,4727
1.6734
21566
2.7725
3.5557
4.5494
5.8074
73964
9.3992
11.9182
27
1.3082
1,4948
17069
22213
2.8834
37335
4.8223
6.2139
79881
10.2451
131100
28
13213
1.5172
17410
2.2879
2.9987
3.9201
5.117
6.6488
86271
11.1672
14.4210
29
1.3345
1.5400
17758
23566
3.1187
4.1161
5.4184
71143
9.3173
12.1722
15.8631
30
1.3478
1.5631
1.8114
2.4273
3.2434
4.3219
5.7435
7.6123
10.0627
13.2677
174494
Note: For more detailed tables, see your reference booklet, the Business Math Handbook.
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