9. DETAILS BRECMBC9 12.111.014. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Solve by using tables Table 12-1 and Table 12-2. Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $8,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment in $) will allow them to achieve their vacation goal? (Round your answer to the nearest cent.) $ Need Help? Read It TABLE 12-1 Future Value (Amount of an Ordinary Annuity of 44 6% Periods 1 86 1.00000 1.00000 1.00000 2.04000 Periods 1 2 1% 1 1.00000 1.00000 1.00000 2.00500 2.01000 2.01500 3.01502 3.03010 3,04522 4.03010 4.06040 4.09090 5.05025 5.10101 5.15227 2 3 4 5 28 1.00000 1.00000 2.02000 2.03000 3,06040 3.09090 4.12161 4.18963 5.20404 5.30914 5% 1.000000 2.05000 3.15250 431013 5.52563 3 78 1.00000 2.07000 3.21490 4.43994 5.75074 2.06000 3.18360 4.37462 5.63709 3.12160 4.24646 5.41632 2.08000 3.24640 4.50611 5.86660 5 6 6 7 7 8 8 9 6.07550 6.15202 6.22955 6.30812 6.46841 6.63298 6.80191 6.97532 7.15329 7.33593 7.10588 7.21354 7.32799 7.43428 7.66246 7.89829 8.14201 8.39384 8.65402 8.92280 8.14141 8.28567 8.43284 8.58297 8.89234 9.21423 9.54911 9.89747 10.25980 10.63663 9.18212 9.36853 9.55933 9.75463 10.15911 10.58280 11.02656 11.49132 11.97799 12.48756 10.22803 10.46221 10.70272 10.94972 11.46388 12.00611 12.57789 13.18079 13.81645 14.48656 8 9 9 10 10 11 11 12 12 13 11.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 14.97164 15.78360 16.64549 12.33556 12.68250 13.04121 13.41209 14.19203 15.02581 15.91713 16.86994 17.88845 18.97713 13.39724 13.80933 14.23683 14.68033 15.61779 16.62684 17.71298 18.88214 20.14064 21.49530 14.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 21.01507 22.55049 24.21492 15.53655 16.09690 16.68214 17.29342 18.59891 20.02359 21.57856 23.27597 25.12902 27.15211 13 14 14 15 15 16 17 16.61423 17.25786 17.93237 18.63929 20.15688 21.82453 23.65749 25.67253 27.88805 17.69730 18.43044 19.20136 20.01207 21.76159 23.69751 25.84037 28.21288 30.84022 18.78579 19.61475 20.48938 21.41231 23.41444 25.64541 28.13238 30.90565 33.99903 19.87972 20.81090 21.79672 22.84056 25.11687 27.67123 30.53900 33.75999 37.37896 20.97912 22.01900 23.12367 24.29737 26.87037 29.77808 33.06595 36.78559 40.99549 18 30.32428 33.75023 37.45024 41.44626 45.76190 16 17 18 19 19 20 20 21 22 23 22.08401 23.23919 24.47052 25.78332 28.67649 31.96920 35.71925 39.99273 44.86518 23.19443 24.47159 25.83758 27.29898 30.53678 34.24797 38.50521 43.39229 49.00574 24.31040 25.71630 27.22514 28.84496 32.45288 36.61789 41.43048 46.99583 53.43614 25.43196 26.97346 28.63352 30.42186 34.42647 39.08260 44.50200 50.81558 58.17667 26.55912 28.24320 30.06302 32.03030 36.45926 41.64591 47.72710 54.86451 63.24904 50.42292 55.45676 60.89330 66.76476 73.10594 21 22 23 24 25 24 25 26 26 27 27.69191 29.52563 31.51397 33.67091 38.55304 44.31174 51.11345 59.15638 68.67647 79.95442 28.83037 30.82089 32.98668 35.34432 40.70963 47.08421 54.66913 63.70577 74.48382 87.35077 29.97452 32.12910 34.48148 37.05121 42.93092 49.96758 58.40258 68.52811 80.69769 95.33883 31.12439 33.45039 35.99870 38.79223 45.21885 52.96629 62.32271 73.63980 87.34653 103.96594 32.28002 34.78489 37.53868 40.56808 47.57542 56.08494 66.43885 79.05819 94.46079 113.28321 27 28 28 29 29 30 30 31 31 32 33 32 33 33.44142 36.13274 39.10176 42.37944 50.00268 59.32834 70.76079 84.80168 102.07304 123.34587 34.60862 37.49407 40.68829 44.22703 52.50276 62.70147 75.29883 90.88978 110.21815 134.21354 35.78167 38.86901 42.29861 46.11157 55.07784 66.20953 80.06377 97.34316 118.93343 145.95062 36.96058 40.25770 43.93309 48.03380 57.73018 69.85791 85.06696 104.18375 128.25876 158.62667 38.14538 41.66028 45.59209 49.99448 60.46208 73.65222 90.32031 111.43478 138.23688 172.31680 39.33610 43.07688 47.27597 51.99437 63.27594 77.59831 95.83632 119.12087 148.91346 187.10215 34 34 35 35 36 36 (1+1)"-1 The values in Table 12-1 were generated by the formula i and rounded to five decimal places, where i is the interest rate per period and n is the total number of periods. TABLE 12-1 Future Value (Amount) of an Ordinary Annuity of $1 (Continued) 11% Periods 1 125 1.00000 2.12000 15% % 1.00000 2.15000 2. 3 3 9% 10% 1.00000 1.00000 2.09000 2.10000 3.27810 3.31000 4.57313 4.64100 5.98471 6.10510 1.00000 2.11000 3.34210 4.70973 6.22780 13% 14% 1.00000 1.00000 2.13000 2.14000 3.40690 3.43960 4.84980 4.92114 6.48027 6.61010 16% 1.00000 2.16000 3.50560 5.06650 6.87714 17% 1.00000 2.17000 3.53890 5.14051 7.01440 18% Periods 1.00000 1 2.18000 2 3.57240 3 5.21543 4 7.15421 S 3.37440 4.77933 6.35285 3.47250 4.99338 4 5 6.74238 6 7 8 7.52333 7.71561 7.91286 8.11519 8.32271 8.53552 8.75374 9.20043 9.48717 9.78327 10.08901 10,40466 10.73049 11.06680 11.02847 11.43589 11.85943 12.29969 12.75726 13.23276 13.72682 13.02104 13.57948 14.16397 14.77566 15.41571 16.08535 16.78584 15.19293 15.93742 16.72201 17.54874 18.41975 19.33730 20.30372 8.97748 11.41387 14.24009 17.51851 21.32147 9.20685 11.77201 14.77325 18.28471 22.39311 9.441976 12.14152 7 15.32700 8 19.085859 23.5213110 9 10 11 12 13 17.56029 18.53117 19.56143 20.65458 21.81432 23.04452 24.34928 20.14072 21.38428 22.71319 24.13313 25.65018 27.27075 29.00167 22.95338 24.52271 26.21164 28.02911 29.98470 32.08865 34.35192 26.01919 27.97498 30.09492 32.39260 34.88271 37.58107 40.50471 29.36092 31.77248 34.40536 37.27971 40.41746 43.84241 47.5801 25.73290 30.85017 36.78620 43.67199 51.65951 27.19994 32.82393 39.40399 47.10267 56.11013 28.75514 11 34.93107 12 42.21866 13 50.81802 14 60.96527 15 14 15 16 17 18 33.00340 35.94973 39.18995 42.75328 46.67173 50.98035 55.71747 60.92503 66.64885 72.9390116 36.97370 40.54470 44.50084 48.88367 53.73906 59.11760 65.07509 71.67303 78.97915 87.06804 17 41.30134 45.59917 50.39594 55.74971 61.72514 68.39407 75.83636 84.14072 93.40561 103.74028 18 46.01846 51.15909 56.93949 63.43968 70.74941 78.96923 88.21181 98.60323 110.28456 123.41353 19 51.16012 57.27500 64.20283 72.05244 80.94683 91.02493 102.44358 115.37975 130.03294 146.62797 20 19 20 21 22 23 56.76453 64.00250 72.26514 81.69874 92.46992 104.76842 118.81012134.84051 153.13854 174.02100 21 62.87334 71.40275 81.21431 92.50258 105.49101 120.43600 137.63164 157.41499 180.17209 206.34479 22 69.53194 79.54302 91.14788 104.60289 120.20484 138.29704 159.27638 183.60138 211.80134 244.48685 23 76.78981 88.49733 102.17415 118.15524 136.83147 158.65862 184.16784 213.97761 248.80757 289.49448 24 84.70090 98.34706 114.41331 133.33387 155.61956 181.87083 212.79302 249.21402 292.10486 342.60349 25 24 25 26 27 28 93.32398 109.18177 127.99877 150.33393 176.85010 208.33274 245.71197 290.08827 342.76268 405.27211 26 102.72313 121.09994 143.07864 169.37401 200.84061 238.49933 283.56877 337.50239 402.03234 479.22109 27 112.96822 134.20994 159.81729 190.69889 227.94989 272.88923 327.10408 392.50277 471.37783 566.48089 28 124.13536 148.63093 178.39719 214.58275 258.58338 312.09373 377.16969 456.30322 552.51207 669.44745 29 136.30754 164.49402 199.02088 241.33268 293.19922 356.78685 434.74515 530.31173 647.43912 790.94799 30 29 20 31 32 33 149.57522 181.94342 221.91317 271.29261 332.31511 407.73701 500.95692 616.16161 758.50377 934.31863 31 164.03699 201.13777 247.32362 304.84772 376.51608 465.82019 577.10046 715.74746 888.44941 1103.49598 32 179.80032 222.25154 275.52922 342.42945 426.46317 532.03501 664.66552 831.26706 1040.48581 1303.12526 33 196.98234 245.47670 306.83744 384.52098 482.90338 607.51991 765.36535 965.26979 1218.36839 1538.68781 34 215.71075 271.02437 341.58955 431.66350 546.68082 693.57270 881.17016 1120.71295 1426.49102 1816.65161 35 236.12472 299.12681 380.16441 484.46312 618.74933 791.67288 101434568 1301.02703 1669.99450 2144.64890 36 34 35 36 The values in Table 12-1 were generated by the formula (1 + i)" - 1 i rate per period and n is the total number of periods. and rounded to five decimal places, where i is the interest TABLE 12-2 Present Value (Amount) of an Ordinary Annuity of $1 Periods 19 Periods 1 2 0.99502 0.99010 1.98510 1.97040 2.97025 2.94099 3.95050 3.90197 4.92587 4.85343 0.98522 1.95588 2.91220 3.85438 2% 0.98039 1.94156 2.88388 3.80773 0.97087 1.91347 2.82861 3.71710 4.57971 5% 0.95238 1.85941 2.72325 3.54595 4.32948 0.96154 1.88609 2.77509 3.62990 4.45182 3 4 0.94340 1.83339 2.67301 3.46511 4.21236 7% 8% 0.93458 0.92593 1.80802 1.78326 2.62432 2.57710 3.38721 3.31213 4.10020 3.99271 1 2 3 5 4.78264 4.71346 s 6 5.69719 5.60143 5.07569 6 7 6.59821 7 5.89638 5.79548 6.86207 6.72819 7.82296 7.65168 8.77906 8.56602 9.73041 9.47130 8 5.24214 6.00205 6.73274 7.43533 5.41719 6.23028 7.01969 7.78611 8.53020 6.47199 7.32548 8.16224 8.98259 7.48593 8.36052 9.22218 8 4.91732 4.76654 5.58238 5.38929 6.20979 5.97130 6.80169 6.51523 7.36009 7.02358 5.78637 6.46321 7.10782 7.72173 4.62288 5.20637 5.74664 6.24689 6.71008 9 10 9 8.11090 10 11 11 7.88687 8.38384 12 12 13 10.67703 10.36763 10.07112 9.78685 9.25262 8.76048 8.30641 11.61893 11.25508 10.90751 10.57534 9.95400 9.38507 8.86325 12.55615 12.13374 11.73153 11.34837 10.63496 9.98565 9.39357 13.48871 13.00370 12.54338 12.10625 11.29607 10.56312 9.89864 14.41662 13.86505 13.34323 12.84926 11.93794 11.11839 10.37966 7.49867 7.13896 7.94269 7.53604 8.35765 7.90378 8.74547 8.24424 9.10791 8.55948 8.85268 9.29498 13 14 15 9.71225 15 16 17 18 19 15.33993 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 16.25863 15.56225 14.90765 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 17.17277 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 18.08236 17.22601 16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 18.98742 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 16 17 18 19 20 20 21 22 23 24 19.88798 18.85698 17.90014 17.01121 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 20.78406 19.66038 18.62082 17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 21.67568 20.45582 19.33086 18.29220 16.44361 18.29220 16.44361 14.85684 13.48857 12.30338 11.27219 10.37106 22.56287 21.24339 20.03041 18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 23.44564 22.02316 20.71961 19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 21 22 23 24 25 25 26 26 27 24.32402 22.79520 21.39863 20.12104 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998 25.19803 23.55961 22.06762 20.70690 18.32703 16.32959 14.64303 13.21053 11.98671 10.93516 26.06769 24.31644 22.72672 21.28127 18.76411 16.66306 14.89813 13.40616 12.13711 11.05108 26.93302 25.06579 23.37608 21.84438 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841 27.79405 25.80771 24.01584 22.39646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 27 28 28 29 y 29 30 31 31 32 32 33 33 34 28.65080 26.54229 24.64615 22.93770 20.00043 17.58849 15.59281 13.92909 12.53181 11.34980 29.50328 27.26959 25.26714 23.46833 20.38877 17.87355 15.80268 14.08404 12.64656 11.43500 30.35153 27.98969 25.87895 23.98856 20.76579 18.14765 16.00255 14.23023 12.75379 11.51389 31.19555 28.70267 26.48173 24.49859 21.13184 18.41120 16.19290 14.36814 12.85401 11.58693 32.03537 29.40858 27.07559 24.99862 21.48722 18.66461 16.37419 14.49825 12.94767 11.65457 32.87102 30.10751 27.66068 25.48884 21.83225 18.90828 16.54685 14.62099 13.03521 11.71719 34 35 35 36 36 The values in Table 12-2 were generated by the formula (1 + 0 and rounded to five decimal places, where is the interest (1+" - 1 , rate per period and is the total number of periods. (1 + i)" TABLE 12-2 Present Value (Amount) of an Ordinary Annuity of $1 (Continued) 14% 16% Periods 1 Periods 1 2 2 3 4 9% 10% 0.91743 0.90909 1.75911 1.73554 2.53129 2.48685 3.23972 3.16987 3.88965 3.79079 2 119 0.90090 1.71252 2.44371 3.10245 3.69590 12% 13% 0.89286 0.88496 1.69005 1.66810 2.40183 2.36115 3.03735 2.97447 3.60478 3.51723 15% 0.86957 1.62571 2.28323 2.85498 0.87719 1.64666 2.32163 2.91371 0.86207 1.60523 2.24589 2.79818 3.27429 17% 18% 0.85470 0.84746 1.58521 1.56564 2.20958 2.17427 2.74324 2.69006 3.19935 3.12717 3 4. S 5 S 3.43308 3.35216 3.88867 6 7 6 6 7 4.11141 4.56376 4.96764 4.28830 4.48592 4.35526 5.03295 4.86842 5.53482 5.33493 5.99525 5.75902 6.41766 6.14457 4.23054 4.71220 5.14612 5.53705 8 9 3.99755 4.42261 4.79877 5.13166 5.42624 3.78448 4.16042 4.48732 4.77158 3.68474 4.03857 4.34359 4.60654 4.83323 4.63886 4.94637 5.21612 3.58918 3.92238 4.20716 4.45057 4.65860 3.49760 3.81153 4,07757 4.30302 4.49409 5.32825 8 9 10 5.8892 5.65022 5.01877 10 11 12 13 14 6.80519 6.49506 7.16073 6.81369 7.48690 7.10336 7.78615 7.36669 8.06069 7.60608 6.20652 6.49236 6.74987 5.93770 6.19437 6.42355 6.62817 5.68694 5.45273 5.91765 5.66029 6.12181 5.84236 6.30249 6.00207 6.46238 6.14217 5.23371 5.02864 5.42062 5.19711 5.58315 5.34233 5.72448 5.46753 5.84737 5.57546 4.83641 4.988.39 5.11828 5.22930 5.32419 4.65601 4.79322 4.90951 5.00806 5.09158 11 12 13 14 15 6.98187 7.19087 15 6.81086 16 7.37916 6.97399 6.60388 6.26506 5.95423 5.16235 16 5.66850 5.74870 5.40529 5.47461 17 6.37286 6.04716 5.22233 17 18 8.31256 7.82371 8.54363 8.02155 8.75563 8.20141 8.95011 8.36492 9.12855 8.51356 6.46742 6.12797 5.53385 7.54879 7.70162 7.83929 7.96333 7.11963 7.24967 7.36578 7.46944 6.72909 6.83991 6.93797 7.02475 19 18 19 6.55037 6.62313 5.81785 5.87746 5.92884 6.19823 6.25933 5.27316 5.31624 5.35275 5.58449 5.62777 20 20 d = = = = = = = = = 6 7 8 9 8 7 6 7 8 7.56200 6.31246 6.35866 5.97314 6.01133 21 22 23 24 9.29224 8.64869 9.44243 8.77154 9.58021 8.88322 9.70661 8.98474 9.82258 9.07704 8.07507 8.17574 8.26643 8.34814 8.42174 7.10155 6.68696 7.16951 6.74294 7.22966 6.79206 7.28288 6.83514 7.32998 6.87293 7.64465 7.71843 7.78432 7.84314 21 22 23 6.39884 6.43377 6.46415 5.66476 5.69637 5.72340 5.74649 5.76623 6.04425 6.07263 6.09709 5.38368 5.40990 5.43212 5.45095 5.46691 24 25 25 8.48806 6.49056 26 27 28 9.92897 9.16095 10.02658 9.23722 10.11613 9.30657 10.19828 9.36961 10.27365 9.42691 8.54780 8.60162 7.89566 7.94255 7.98442 7.37167 6.90608 7.40856 6.93515 7.44120 6.96066 7.47009 6.98304 7.49565 7.00266 6.51353 6.53351 6.11818 6.13636 6.15204 5.78311 5.79753 5.80985 5.82039 5.82939 5.48043 5.49189 5.50160 5.50983 5.51681 26 27 28 29 30 8.65011 29 30 8.02181 8.05518 6.55088 6.56598 6.16555 6.17720 8.69379 31 32 31 32 33 33 10.34280 9.47901 10.40624 9.52638 10.46444 9.56943 10.51784 9.60857 10.56682 9.64416 10.61176 9.67651 8.73315 8.08499 7.51828 7.01988 6.57911 6.18724 5.83709 5.52272 8.76860 8.11159 7.53830 7.03498 6.59053 6.19590 5.84366 5.52773 8.80054 8.13535 8.13535 7.55602 7.04823 6.60046 6.20336 5.84928 5.53197 8.82932 8.15656 7.57170 7.05985 6.60910 6.20979 5.85409 5.53557 8.85524 8.17550 7.58557 7.07005 6.61661 6.21534 5.85820 5.53862 8.87859 8.19241 7.59785 7.07899 6.62314 6.22012 5.86171 5.54120 34 35 36 35 36 The values in Table 12-2 were generated by the formula 1 + 1)" wd rounded to five decimal places, where is the interest (1 + 1)"! (1 + 1)" rate per period and n is the total number of periods