Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suze Orman wants to pay $1,410 semiannually to her granddaughter for 11 years for helping her around the house. If Suze can invest money at
Suze Orman wants to pay $1,410 semiannually to her granddaughter for 11 years for helping her around the house. If Suze can invest money at 4% compounded semiannually, how much must she invest today to meet this goal? (Please use the following provided Table.)
ent value interest factor of an (ordinary) annuity of $1 per period at i% for n periods, PVIFA(i,n).
Period | 0.5% | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% | 6.5% | 7.0% | 7.5% | 8.0% | 8.5% | 9.0% | 9.5% | 10.0% |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | 0.9950 | 0.9901 | 0.9852 | 0.9804 | 0.9756 | 0.9709 | 0.9662 | 0.9615 | 0.9569 | 0.9524 | 0.9479 | 0.9434 | 0.9390 | 0.9346 | 0.9302 | 0.9259 | 0.9217 | 0.9174 | 0.9132 | 0.9091 |
2 | 1.9851 | 1.9704 | 1.9559 | 1.9416 | 1.9274 | 1.9135 | 1.8997 | 1.8861 | 1.8727 | 1.8594 | 1.8463 | 1.8334 | 1.8206 | 1.8080 | 1.7956 | 1.7833 | 1.7711 | 1.7591 | 1.7473 | 1.7355 |
3 | 2.9702 | 2.9410 | 2.9122 | 2.8839 | 2.8560 | 2.8286 | 2.8016 | 2.7751 | 2.7490 | 2.7232 | 2.6979 | 2.6730 | 2.6485 | 2.6243 | 2.6005 | 2.5771 | 2.5540 | 2.5313 | 2.5089 | 2.4869 |
4 | 3.9505 | 3.9020 | 3.8544 | 3.8077 | 3.7620 | 3.7171 | 3.6731 | 3.6299 | 3.5875 | 3.5460 | 3.5052 | 3.4651 | 3.4258 | 3.3872 | 3.3493 | 3.3121 | 3.2756 | 3.2397 | 3.2045 | 3.1699 |
5 | 4.9259 | 4.8534 | 4.7826 | 4.7135 | 4.6458 | 4.5797 | 4.5151 | 4.4518 | 4.3900 | 4.3295 | 4.2703 | 4.2124 | 4.1557 | 4.1002 | 4.0459 | 3.9927 | 3.9406 | 3.8897 | 3.8397 | 3.7908 |
6 | 5.8964 | 5.7955 | 5.6972 | 5.6014 | 5.5081 | 5.4172 | 5.3286 | 5.2421 | 5.1579 | 5.0757 | 4.9955 | 4.9173 | 4.8410 | 4.7665 | 4.6938 | 4.6229 | 4.5536 | 4.4859 | 4.4198 | 4.3553 |
7 | 6.8621 | 6.7282 | 6.5982 | 6.4720 | 6.3494 | 6.2303 | 6.1145 | 6.0021 | 5.8927 | 5.7864 | 5.6830 | 5.5824 | 5.4845 | 5.3893 | 5.2966 | 5.2064 | 5.1185 | 5.0330 | 4.9496 | 4.8684 |
8 | 7.8230 | 7.6517 | 7.4859 | 7.3255 | 7.1701 | 7.0197 | 6.8740 | 6.7327 | 6.5959 | 6.4632 | 6.3346 | 6.2098 | 6.0888 | 5.9713 | 5.8573 | 5.7466 | 5.6392 | 5.5348 | 5.4334 | 5.3349 |
9 | 8.7791 | 8.5660 | 8.3605 | 8.1622 | 7.9709 | 7.7861 | 7.6077 | 7.4353 | 7.2688 | 7.1078 | 6.9522 | 6.8017 | 6.6561 | 6.5152 | 6.3789 | 6.2469 | 6.1191 | 5.9952 | 5.8753 | 5.7590 |
10 | 9.7304 | 9.4713 | 9.2222 | 8.9826 | 8.7521 | 8.5302 | 8.3166 | 8.1109 | 7.9127 | 7.7217 | 7.5376 | 7.3601 | 7.1888 | 7.0236 | 6.8641 | 6.7101 | 6.5613 | 6.4177 | 6.2788 | 6.1446 |
11 | 10.6770 | 10.3676 | 10.0711 | 9.7868 | 9.5142 | 9.2526 | 9.0016 | 8.7605 | 8.5289 | 8.3064 | 8.0925 | 7.8869 | 7.6890 | 7.4987 | 7.3154 | 7.1390 | 6.9690 | 6.8052 | 6.6473 | 6.4951 |
12 | 11.6189 | 11.2551 | 10.9075 | 10.5753 | 10.2578 | 9.9540 | 9.6633 | 9.3851 | 9.1186 | 8.8633 | 8.6185 | 8.3838 | 8.1587 | 7.9427 | 7.7353 | 7.5361 | 7.3447 | 7.1607 | 6.9838 | 6.8137 |
13 | 12.5562 | 12.1337 | 11.7315 | 11.3484 | 10.9832 | 10.6350 | 10.3027 | 9.9856 | 9.6829 | 9.3936 | 9.1171 | 8.8527 | 8.5997 | 8.3577 | 8.1258 | 7.9038 | 7.6910 | 7.4869 | 7.2912 | 7.1034 |
14 | 13.4887 | 13.0037 | 12.5434 | 12.1062 | 11.6909 | 11.2961 | 10.9205 | 10.5631 | 10.2228 | 9.8986 | 9.5896 | 9.2950 | 9.0138 | 8.7455 | 8.4892 | 8.2442 | 8.0101 | 7.7862 | 7.5719 | 7.3667 |
15 | 14.4166 | 13.8651 | 13.3432 | 12.8493 | 12.3814 | 11.9379 | 11.5174 | 11.1184 | 10.7395 | 10.3797 | 10.0376 | 9.7122 | 9.4027 | 9.1079 | 8.8271 | 8.5595 | 8.3042 | 8.0607 | 7.8282 | 7.6061 |
16 | 15.3399 | 14.7179 | 14.1313 | 13.5777 | 13.0550 | 12.5611 | 12.0941 | 11.6523 | 11.2340 | 10.8378 | 10.4622 | 10.1059 | 9.7678 | 9.4466 | 9.1415 | 8.8514 | 8.5753 | 8.3126 | 8.0623 | 7.8237 |
17 | 16.2586 | 15.5623 | 14.9076 | 14.2919 | 13.7122 | 13.1661 | 12.6513 | 12.1657 | 11.7072 | 11.2741 | 10.8646 | 10.4773 | 10.1106 | 9.7632 | 9.4340 | 9.1216 | 8.8252 | 8.5436 | 8.2760 | 8.0216 |
18 | 17.1728 | 16.3983 | 15.6726 | 14.9920 | 14.3534 | 13.7535 | 13.1897 | 12.6593 | 12.1600 | 11.6896 | 11.2461 | 10.8276 | 10.4325 | 10.0591 | 9.7060 | 9.3719 | 9.0555 | 8.7556 | 8.4713 | 8.2014 |
19 | 18.0824 | 17.2260 | 16.4262 | 15.6785 | 14.9789 | 14.3238 | 13.7098 | 13.1339 | 12.5933 | 12.0853 | 11.6077 | 11.1581 | 10.7347 | 10.3356 | 9.9591 | 9.6036 | 9.2677 | 8.9501 | 8.6496 | 8.3649 |
20 | 18.9874 | 18.0456 | 17.1686 | 16.3514 | 15.5892 | 14.8775 | 14.2124 | 13.5903 | 13.0079 | 12.4622 | 11.9504 | 11.4699 | 11.0185 | 10.5940 | 10.1945 | 9.8181 | 9.4633 | 9.1285 | 8.8124 | 8.5136 |
21 | 19.8880 | 18.8570 | 17.9001 | 17.0112 | 16.1845 | 15.4150 | 14.69 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started