Question
ABC Company intends to put $6,000 into its savings account every six months for the next four years. Assume the savings account earns 12% interest
ABC Company intends to put $6,000 into its savings account every six months for the next four years. Assume the savings account earns 12% interest compounded semi-annually. Calculate the amount that will be in the account at the end of the four years. Do not use decimals in your answer.
Use the time value of money factors posted on carmen to answer this question. To access these factors, click on content and then scroll to the bottom and click on the link labeled present & future value table factors. No credit will be awarded for this question using a means other than these table factors to answer this question.
| Future Value of a Lump-Sum |
| Rate of interest per period in percent | |||||||||
Periods | 3% | 4% | 5% | 6% | 8% | 9% | 10% | 12% | 14% | 16% |
3 | 1.0927 | 1.1249 | 1.1576 | 1.1910 | 1.2597 | 1.2950 | 1.3310 | 1.4049 | 1.4815 | 1.5609 |
4 | 1.1255 | 1.1699 | 1.2155 | 1.2625 | 1.3605 | 1.4116 | 1.4641 | 1.5735 | 1.6890 | 1.8106 |
5 | 1.1593 | 1.2167 | 1.2783 | 1.3382 | 1.4693 | 1.5386 | 1.6105 | 1.7623 | 1.9254 | 2.1003 |
6 | 1.1941 | 1.2653 | 1.3401 | 1.4185 | 1.5869 | 1.6771 | 1.7716 | 1.9738 | 2.1950 | 2.4364 |
7 | 1.2299 | 1.3159 | 1.4071 | 1.5036 | 1.7138 | 1.8280 | 1.9487 | 2.2107 | 2.5023 | 2.8262 |
8 | 1.2668 | 1.3686 | 1.4775 | 1.5939 | 1.8510 | 1.9926 | 2.1436 | 2.4760 | 2.8526 | 3.2784 |
9 | 1.3048 | 1.4233 | 1.5513 | 1.6895 | 1.9990 | 2.1719 | 2.3580 | 2.7731 | 3.2519 | 3.8030 |
10 | 1.3439 | 1.4802 | 1.6289 | 1.7909 | 2.1589 | 2.3674 | 2.5938 | 3.1059 | 3.7072 | 4.4114 |
12 | 1.4258 | 1.6010 | 1.7959 | 2.0122 | 2.5182 | 2.8127 | 3.1384 | 3.8960 | 4.8179 | 5.9360 |
15 | 1.5580 | 1.8009 | 2.0789 | 2.3965 | 3.1722 | 3.6425 | 4.1773 | 5.4736 | 7.1379 | 9.2655 |
16 | 1.6047 | 1.8730 | 2.1829 | 2.5404 | 3.4259 | 3.9703 | 4.5950 | 6.1304 | 8.1372 | 10.7480 |
17 | 1.6529 | 1.9479 | 2.2920 | 2.6928 | 3.7000 | 4.3276 | 5.0545 | 6.8660 | 9.2765 | 12.4677 |
18 | 1.7024 | 2.0258 | 2.4066 | 2.8543 | 3.9960 | 4.7171 | 5.5599 | 7.6900 | 10.5752 | 14.4625 |
19 | 1.7535 | 2.1069 | 2.5270 | 3.0256 | 4.3157 | 5.1417 | 6.1159 | 8.6128 | 12.0557 | 16.7765 |
20 | 1.8061 | 2.1911 | 2.6533 | 3.2071 | 4.6610 | 5.6044 | 6.7275 | 9.6463 | 13.7435 | 19.4608 |
21 | 1.8603 | 2.2788 | 2.7860 | 3.3996 | 5.0338 | 6.1088 | 7.4003 | 10.8039 | 15.6676 | 22.5745 |
22 | 1.9161 | 2.3699 | 2.9253 | 3.6035 | 5.4365 | 6.6586 | 8.1403 | 12.1003 | 17.8610 | 26.1864 |
23 | 1.9736 | 2.4647 | 3.0715 | 3.8198 | 5.8715 | 7.2579 | 8.9543 | 13.5524 | 20.3616 | 30.3762 |
24 | 2.0325 | 2.5633 | 3.2251 | 4.0489 | 6.3412 | 7.9111 | 9.8497 | 15.1786 | 23.2122 | 35.2364 |
25 | 2.0938 | 2.6658 | 3.3864 | 4.2919 | 6.8485 | 8.6230 | 10.8347 | 17.0000 | 26.4619 | 40.8742 |
60 | 5.8916 | 10.5196 | 18.6792 | 32.9877 | 101.257 | 176.031 | 304.482 | 897.597 | 2595.92 | 7370.20 |
| Present Value of a Lump-Sum |
| Rate of interest per period in percent | |||||||||
Periods | 3% | 5% | 6% | 8% | 9% | 10% | 12% | 14% | 15% | 20% |
3 | 0.9151 | 0.8638 | 0.8396 | 0.7938 | 0.7722 | 0.7513 | 0.7118 | 0.6750 | 0.6575 | 0.5787 |
4 | 0.8885 | 0.8227 | 0.7921 | 0.7350 | 0.7084 | 0.6830 | 0.6355 | 0.5921 | 0.5718 | 0.4823 |
5 | 0.8626 | 0.7835 | 0.7473 | 0.6806 | 0.6499 | 0.6209 | 0.5674 | 0.5194 | 0.4972 | 0.4019 |
6 | 0.8375 | 0.7462 | 0.7050 | 0.6311 | 0.5963 | 0.5645 | 0.5066 | 0.4556 | 0.4323 | 0.3349 |
7 | 0.8131 | 0.7107 | 0.6651 | 0.5835 | 0.5470 | 0.5132 | 0.4523 | 0.3996 | 0.3759 | 0.2791 |
8 | 0.7894 | 0.6768 | 0.6274 | 0.5403 | 0.5019 | 0.4665 | 0.4039 | 0.3506 | 0.3269 | 0.2326 |
9 | 0.7664 | 0.6446 | 0.5919 | 0.5003 | 0.4604 | 0.4241 | 0.3606 | 0.3075 | 0.2843 | 0.1938 |
10 | 0.7441 | 0.6139 | 0.5584 | 0.4632 | 0.4224 | 0.3855 | 0.3220 | 0.2697 | 0.2472 | 0.1615 |
12 | 0.7014 | 0.5568 | 0.4970 | 0.3971 | 0.3555 | 0.3186 | 0.2567 | 0.2076 | 0.1869 | 0.1122 |
15 | 0.6419 | 0.4810 | 0.4173 | 0.3152 | 0.2745 | 0.2394 | 0.1827 | 0.1401 | 0.1229 | 0.0649 |
16 | 0.6232 | 0.4581 | 0.3937 | 0.2919 | 0.2519 | 0.2176 | 0.1631 | 0.1229 | 0.1069 | 0.0541 |
17 | 0.6050 | 0.4363 | 0.3714 | 0.2703 | 0.2311 | 0.1978 | 0.1456 | 0.1078 | 0.0929 | 0.0471 |
18 | 0.5874 | 0.4155 | 0.3503 | 0.2503 | 0.2120 | 0.1799 | 0.1300 | 0.0946 | 0.0808 | 0.0376 |
19 | 0.5703 | 0.3957 | 0.3305 | 0.2317 | 0.1945 | 0.1635 | 0.1161 | 0.0829 | 0.0703 | 0.0313 |
20 | 0.5537 | 0.3769 | 0.3118 | 0.2146 | 0.1784 | 0.1486 | 0.1037 | 0.0728 | 0.0611 | 0.0261 |
21 | 0.5375 | 0.3589 | 0.2942 | 0.1987 | 0.1637 | 0.1351 | 0.0926 | 0.0638 | 0.0531 | 0.0217 |
24 | 0.4920 | 0.3101 | 0.2470 | 0.1577 | 0.1264 | 0.1015 | 0.0659 | 0.0431 | 0.0349 | 0.0126 |
25 | 0.4776 | 0.2953 | 0.2330 | 0.1460 | 0.1160 | 0.0923 | 0.0588 | 0.0378 | 0.0304 | 0.0105 |
| Future Value of an Annuity |
| Rate of interest per period in percent | |||||||||
Periods | 3% | 4% | 5% | 6% | 8% | 9% | 10% | 12% | 14% | 16% |
3 | 3.0909 | 3.1216 | 3.1525 | 3.1836 | 3.2464 | 3.2781 | 3.3100 | 3.3744 | 3.4396 | 3.5056 |
4 | 4.1836 | 4.2465 | 4.3101 | 4.3746 | 4.5061 | 4.5731 | 4.6410 | 4.7793 | 4.9211 | 5.0665 |
5 | 5.3091 | 5.4163 | 5.5256 | 5.6371 | 5.8667 | 5.9847 | 6.1051 | 6.3529 | 6.6101 | 6.8771 |
6 | 6.4684 | 6.6330 | 6.8019 | 6.9753 | 7.3359 | 7.5233 | 7.7156 | 8.1152 | 8.5355 | 8.9775 |
7 | 7.6625 | 7.8983 | 8.1420 | 8.3938 | 8.9228 | 9.2004 | 9.4872 | 10.0890 | 10.7305 | 11.4139 |
8 | 8.8923 | 9.2142 | 9.5491 | 9.8975 | 10.6366 | 11.0285 | 11.4359 | 12.2997 | 13.2328 | 14.2401 |
9 | 10.1591 | 10.5828 | 11.0266 | 11.4913 | 12.4876 | 13.0210 | 13.5795 | 14.7757 | 16.0853 | 17.5185 |
10 | 11.4639 | 12.0061 | 12.5779 | 13.1808 | 14.4866 | 15.1929 | 15.9374 | 17.5487 | 19.3373 | 21.3215 |
12 | 14.1920 | 15.0258 | 15.9171 | 16.8699 | 18.9771 | 20.1407 | 21.3843 | 24.1331 | 27.2707 | 30.8502 |
15 | 18.5990 | 20.0236 | 21.5786 | 23.2760 | 27.1521 | 29.3609 | 31.7725 | 37.2797 | 43.8424 | 51.6595 |
16 | 20.1569 | 21.8245 | 23.6575 | 25.6725 | 30.3243 | 33.0034 | 35.9497 | 42.7533 | 50.9804 | 60.9250 |
17 | 21.7616 | 23.6975 | 25.8404 | 28.2129 | 33.7502 | 36.9737 | 40.5447 | 48.8837 | 59.1176 | 71.6730 |
18 | 23.4144 | 25.6454 | 28.1324 | 30.9057 | 37.4502 | 41.3013 | 45.5992 | 55.7497 | 68.3941 | 84.1407 |
19 | 25.1169 | 27.6712 | 30.5390 | 33.7560 | 41.4463 | 46.0185 | 51.1591 | 63.4397 | 78.9692 | 98.6032 |
20 | 26.8704 | 29.7781 | 33.0660 | 36.7856 | 45.7620 | 51.1601 | 57.2750 | 72.0524 | 91.0249 | 115.380 |
21 | 28.6765 | 31.9692 | 35.7193 | 39.9928 | 50.4229 | 56.7645 | 64.0025 | 81.6987 | 104.768 | 134.841 |
22 | 30.5368 | 34.2480 | 38.5052 | 43.3923 | 55.4568 | 62.8733 | 71.4028 | 92.5026 | 120.436 | 157.415 |
23 | 32.4529 | 36.6179 | 41.4305 | 46.9958 | 60.8933 | 69.5319 | 79.5430 | 104.603 | 138.297 | 183.601 |
24 | 34.4265 | 39.0826 | 44.5020 | 50.8156 | 66.7648 | 76.7898 | 88.4973 | 118.155 | 158.659 | 213.978 |
25 | 36.4593 | 41.6459 | 47.7271 | 54.8645 | 73.1059 | 84.7009 | 98.3471 | 133.333 | 181.871 | 249.214 |
60 | 163.053 | 237.991 | 353.584 | 533.128 | 1253.21 | 1944.79 | 3034.82 | 7471.64 | 18535.1 | 46057.5 |
| Present Value of an Annuity |
| Rate of interest per period in percent | |||||||||
Periods | % | 3% | 5% | 6% | 8% | 9% | 10% | 12% | 15% | 20% |
3 | 2.9703 | 2.8286 | 2.7233 | 2.6730 | 2.5771 | 2.5313 | 2.4869 | 2.4018 | 2.2832 | 2.1065 |
4 | 3.9505 | 3.7171 | 3.5460 | 3.4651 | 3.3121 | 3.2397 | 3.1699 | 3.0374 | 2.8550 | 2.5887 |
5 | 4.9259 | 4.5797 | 4.3295 | 4.2124 | 3.9927 | 3.8897 | 3.7908 | 3.6048 | 3.3522 | 2.9906 |
6 | 5.8964 | 5.4172 | 5.0757 | 4.9173 | 4.6229 | 4.4859 | 4.3553 | 4.1114 | 3.7845 | 3.3255 |
7 | 6.8621 | 6.2303 | 5.7864 | 5.5824 | 5.2064 | 5.0330 | 4.8684 | 4.5638 | 4.1604 | 3.6046 |
8 | 7.8230 | 7.0197 | 6.4632 | 6.2098 | 5.7466 | 5.5348 | 5.3349 | 4.9676 | 4.4873 | 3.8372 |
9 | 8.7791 | 7.7861 | 7.1078 | 6.8017 | 6.2469 | 5.9953 | 5.7590 | 5.3283 | 4.7716 | 4.0310 |
10 | 9.7304 | 8.5302 | 7.7217 | 7.3601 | 6.7101 | 6.4177 | 6.1446 | 5.6502 | 5.0188 | 4.1925 |
12 | 11.6189 | 9.9540 | 8.8633 | 8.3838 | 7.5361 | 7.1607 | 6.8137 | 6.1944 | 5.4206 | 4.4392 |
15 | 14.4166 | 11.9379 | 10.3797 | 9.7123 | 8.5595 | 8.0607 | 7.6061 | 6.8109 | 5.8474 | 4.6755 |
16 | 15.3399 | 12.5611 | 10.8378 | 10.1059 | 8.8514 | 8.3126 | 7.8237 | 6.9740 | 5.9542 | 4.7296 |
17 | 16.2586 | 13.1661 | 11.2741 | 10.4773 | 9.1216 | 8.5436 | 8.0215 | 7.1196 | 6.0472 | 4.7746 |
18 | 17.1728 | 13.7535 | 11.6896 | 10.8276 | 9.3719 | 8.7556 | 8.2014 | 7.2497 | 6.1280 | 4.8122 |
19 | 18.0824 | 14.3238 | 12.0853 | 11.1581 | 9.6036 | 8.9501 | 8.3649 | 7.3658 | 6.1982 | 4.8435 |
20 | 18.9874 | 14.8775 | 12.4622 | 11.4699 | 9.8182 | 9.1286 | 8.5135 | 7.4694 | 6.2593 | 4.8696 |
21 | 19.8880 | 15.4150 | 12.8212 | 11.7641 | 10.0168 | 9.2922 | 8.6487 | 7.5620 | 6.3125 | 4.8913 |
25 | 23.4456 | 17.4132 | 14.0939 | 12.7834 | 10.6748 | 9.8226 | 9.0770 | 7.8431 | 6.4641 | 4.9476 |
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