(Chapter 12 Section II Review Exercise 014) Question 15 or Check My Work Solve the following by using Table 12-2. Ron Sample is the grand prize winner in a college tuition essay contest awarded through a local organization's scholarship fund. The winner receives $1,700 at the beginning of each 6 months for the next 4 years. How much should be invested at 2% interest compounded semiannually to award the prize? Round your answer to the nearest cent. Click here for Table 12-2 Hide Feedback Incorrect Check My Work Feedback See Section II: Present Value of an Annuity: Ordinary and Annuity Due. TABLE 12-2 Present Value (Amount) of an Ordinary Annuity of $1 Periods 49 69 89 Periods 1 0.98522 - 2 0.99502 1.98510 2.97025 3.95050 4.92587 0.99010 1.97040 2.94099 3.90197 4.85343 2% 0.98039 1.94156 2.88388 3.80773 4.71346 1.95588 2.91220 3.85438 3 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 7% 0.93458 1.80802 2.62432 3.38721 4.10020 0.94340 1.83339 2.67301 3.46511 4.21236 0.92593 1.78326 2.57710 3.31213 3.99271 2 3 4 5 4.78264 5 6 6 7 7 5.89638 6.86207 7.82296 8.77906 9.73041 8 5.79548 6.72819 7.65168 8.56602 9.47130 5.69719 6.59821 7.48593 8.36052 9.22218 5.60143 6.47199 7.32548 8.16224 8.98259 5.41719 6.23028 7.01969 7.78611 8.53020 5.24214 6.00205 6.73274 7.43533 8.11090 8 5.07569 5.78637 6.46321 7.10782 7.72173 4.91732 5.58238 6.20979 6.80169 7.36009 4.76654 5.38929 5.97130 6.51523 7.02358 4.62288 5.20637 5.74664 6.24689 6.71008 9 9 10 10 11 12 12 8.30641 8.86325 9.39357 9.89864 10.37966 10.67703 10.36763 10.07112 9.78685 9.25262 8.76048 11.61893 11.25508 10.90751 10.57534 9.95400 9.38507 12.55615 12.13374 11.73153 11.34837 10.63496 9.98565 13.48871 13.00370 12.54338 12.10625 11.29607 10.56312 14.41662 13.86505 13.34323 12.84926 11.93794 11.11839 7.88687 8.38384 8.85268 9.29498 9.71225 7.49867 7.94269 8.35765 8.74547 9.10791 7.13896 7.53608 7.90378 8.24424 8 55948 13 14 13 14 15 15 16 17 15 33993 16.25863 17.17277 18.08236 18.98742 8.85137 9.12164 9.37189 9.60360 9.81815 14.71787 14.13126 13.57771 12.56110 11.65230 10.83777 10.10590 9.44665 15.56225 14.90765 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 16.39827 15.67256 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 17.22601 16.42617 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11.46992 10.59-01 18 16 17 18 19 20 19 20 21 22 23 21 22 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 14.85684 13.48857 12.30338 11.27219 10.37106 23 LUCs/louie 12-4.pat 21 22 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 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 23 24 25 26 27 28 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 13.5907212.27767 11.15841 27.79405 25.80771 24.01584 22.39646 19.60014 17.29203 15.37245 13.76483 12.40904 11.25778 28 29 29 30 30 31 32 31 32 33 34 35 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 14.08-404 12.6-1656 11.43500 30.35153 27.98969 25.87895 23.98856 20.76579 18.14765 16.00255 14.2302312.75379 11.51389 31.19555 28.70267 26.48173 24.49859 21.13184 18.41120 16.19290 14.36814 12.85401 11.58693 32.03537 29.408.58 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 33 34 35 36 36 The values in Table 12-2 were generated by the formula period and n is the total number of periods. (1 + 1)" - 1 and rounded to five decimal places, where i is the interest rate per i(1 + i)" TABLE 12-2 Present Value (Amount of an Ordinary Annuity of $1 (Continued) Periods Periods 175 085470 165 0.86207 1.60523 1 0.84746 2 2 95 10% 0.91743 0.90909 1.75911 1.73554 2.53129 2.48685 3.23972 3.16987 3.88965 3.79079 129 0.89286 1.62005 2.40183 3.03735 3.60478 135 0.884496 1.66810 2.36115 2.97447 3.51723 0.90090 1.71252 2.44371 3.10245 3.69590 3 1496 0.87719 1.61666 2.32163 2.91371 3.43308 15% 0.86957 1.62571 2.28323 2.85498 3215216 3 2 20958 2.74334 3.1995 2.79818 2.17427 2.69006 3.12717 4 5 4 5 6 3.49760 58918 3.68474 3.78448 3.88867 3.99755 4.48592 4.35526 4.21054 4,11 4.71220 ,,,,, 7 4. III 456376 3. 4.42261 4.28830 8 4.43 ) 5.03295 4.86842 5.53482 5.33493 5.99525 5.75902 6.41766 6.14457 7 4.79877 4.63886 9 5.14612 5.53705 5.88923 4 16042 4.48732 4.77158 5.01877 4.96764 5.32825 5.65023 369 2016 4.03857 392138 4.34.359 420716 4.60654 14.45057 4.83323 4.65860 8 Tag 3.81153 4.07757 4.30302 4.4909 10 5.13166 5.42624 4.94637 5.21612 9 0 11 6.2657 5.937700 5.68604 483641 II 12 5.2337) 5.42062 5.91765 4.65601 4.79322 | 13 6.80519 6.49506 7.16073 6.81369 7.48690) 7.10336 7.78615 7.3btnb9 8.06069 7.6COMMOB 6.49236 6.74987 6.98187 7.19087 6.19437 6.42355 6.62817 5.45273 5.66029 5.84236 6.00207 6.14217 6.12181 6.30249 5.02864 5.19711 5.34233 5. 46753 5.575-46 13 14 5.58315 5.72448 198839 5.11828 5.22930 5.32419 4.90951 5.00806 5.09158 4 15 6.81086 6.46238 5.84737 15 16 16 8.31256 1.82371 8.54363 8.02155 6. MD788 6.720DVD 6.26506 6.37286 17 17 5.95423 6.HT16 6.12797 18 7.37916 7.54879 7.70162 7.83929 796333 6.97399 7.11963 7.24967 7.36578 7.4044 8.75563 8.20141 8.95011 8.36492 9.12855 8.51356 5. 66850 5.74870 5.81785 5.87746 592884 6.8399 | 6.93797 7.02475 18 5.40529 5.4746 5.53385 558149 5.6277 6.46742 6.550037 6.62313 19 5.16235 5.22233 5.27316 531624 5.35275 19 6.19823 6.25933 20 21 63124h 5.1368 27 7.562UMO 7.6-4-465 7.71843 920224 8.64869 9.44243 8.77154 9.58021 8.88322 9.7061 8.98474 9.82258 9.0TUM 8.075107 8.17574 8.26-13 8.34814 8.42174 7.10155 7.16951 7.22016 7.28288 6.68646 6.74214 6.NET 6.83514 2 22 25 5.66-476 5.696.17 5.72 5.973 14 6.01133 6. UNI-125 6.07263 a. WTO 23 6.35866 6.39884 5.4337 6.46-415 5AM) 543212 5.45095 25.4c091 24 24 7.78432 5.74G-19 5.7c623 73118 7.8431-4 6.87293 25 27 9.92897 9.16095 10.02658 9.23722 10.11613 9157 10.199828 9.16961 10.27365 9.42691 7.89566 7.1155 198.A.47 26 27 28 29 30 8.4BBING 854780 8.60]62 8,651011 8. 09379 28 7.37167 7.4LW56 T. 14 120 7.4 TIMO 7.49565 6.HKLUB 693515 6.9L Motos 6.49E BUM T.CMD_Fats 6.11818 6.1 Anit 6.1523 6. 6555 A.1772CD 6.4056 65135. 65115 655 86 564918 5.78 |||| 5. 0753 5. ALONG 5.A.D139 5895 5.4 ALL 5.980 5.11 5 TUR 551KL 8.21% 8,05518 31 8184) 8.11 150 874315 B.ToSt 10.34280 9.47.01 2.4L 24 9.52:48 7.31828 7.538 31 ) 31 42 6.5 149||| the U11 7.01 188 7.10 1140%, 5.3.172 5.52773 6182 A. 19510 5.237U 5. Aft O.J430S 6.02135 7.548/9 7.11963 6.72909 6.37286 6,04716 5.47461 17 18 8.75563 8.20141 7.70162 6,83991 5.74870 5.81785 7.24967 7.36578 5.22233 5.27316 6.12797 5.53385 18 19 6.46742 6.55037 8.95011 8.36492 7.83929 6.19823 5.87746 5.58449 19 20 6.93797 7.02475 9.12855 8.51356 7.96333 7.46944 6.62313 6,25933 5.31624 5.35275 5.92884 5.62777 20 21 9.29224 8.64869 7.56200 7.10155 6.68696 6.31246 5.97314 5.38368 21 22 9.44243 8.77154 7.64465 7.16951 6.74294 6.01133 5.40990 22 23 6.35866 6.39884 8.07507 8.17574 8.26643 8.34814 8.42174 5.66476 5.69637 5.72340 5.74649 9.58021 8.88322 7.71843 7.22966 6.79206 6.04425 23 24 7.78432 5.43212 5.45095 6.83514 6.43377 6.07263 9.70661 9.82258 24 8.98474 9.07704 7.28288 7.32998 25 7.84314 6.87293 6.46415 6.09709 5.76623 5.46691 25 26 9.92897 9.16095 7.89566 7.37167 6.90608 6.49056 26 6.11818 6.13636 27 10.02658 9.23722 7.94255 7.40856 6.93515 8.48806 8.54780 8.60162 8.65011 5.78311 5.79753 5.80985 28 27 28 7.98442 7.44120 6.51353 6.53351 6.55088 6.96066 10.11613 9.30657 10.19828 9.36961 6.15204 5.48043 5.49189 5.50160 5.50983 5.51681 29 8.02181 29 7.47009 7.49565 6.98304 7.00266 6.16555 6.17720 5.82039 5.82939 30 10,27365 9,42691 8.69379 8.05518 6.56598 30 31 8.08499 6.18724 31 32 8.11159 33 32 33 34 35 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 8.76860 8.80054 8.82932 8.85524 8.87859 8.13535 8.15656 8.17550 7.51828 7.53830 7.55602 7.57170 7.58557 7.59785 7.01988 7.03498 7.04823 7.05985 7.07005 7.07899 6.57911 6.59053 6.60046 6.60910 6.61661 6.62314 6.19590 6.20336 6.20979 6.21534 6.22012 5.83709 5.84366 5.84928 5.85409 5.85820 5.86171 5.52272 5.52773 5.53197 5.53557 5.53862 5.54120 34 35 36 36 8.19241 The values in Table 12-2 were generated by the formula period and n is the total number of periods. (1 + i)" - 1 and rounded to five decimal places, where i is the interest rate per (1 + i)