Rosa Burnett needs $3,000 in three years to make the down payment on a new car. How much must she invest today if she receives 2.5% interest annually, compounded annually?

 

 

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Present Value of $1.00 1% 1.5% 2% 6% 8% 10% 12% Periods 0.5% 1 5% 0.95238 0.94340 0.92593 0.90909 0.89286 0.90703 0.89000 0.85734 0.82645 0.79719 Rate per period 2.5% 3% 4% 0.99502 0.99010 0.98522 0.98039 0.97561 0.97087 0.96154 0.99007 0.98030 0.97066 0.96117 0.95181 0.94260 0.92456 0.98515 0.97059 0.95632 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.79383 0.75131 0.71178 0.98025 0.96098 0.94218 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.73503 0.68301 0.63552 0.97537 0.95147 0.92826 0.90573 0.88385 0.86261 0.82193 0.78353 0.74726 0.68058 0.62092 0.56743 0.97052 0.94205 0.91454 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.63017 0.56447 0.50663 0.96569 0.93272 0.90103 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.58349 0.51316 0.45235 0.96089 0.92348 0.88771 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.54027 0.46651 0.40388 0.95610 0.91434 0.87459 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.50025 0.42410 0.36061 10 0.95135 0.90529 0.86167 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.46319 0.38554 0.32197 11 0.94661 0.89632 0.84893 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.42888 0.35049 0.28748 0.94191 0.88745 0.83639 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.39711 0.31863 0.25668 0.93722 0.87866 0.82403 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.36770 0.28966 0.22917 0.93256 0.86996 0.81185 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.34046 0.26333 0.20462 0.92792 0.86135 0.79985 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.31524 0.23939 0.18270 0.92330 0.85282 0.78803 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.29189 0.21763 0.16312 0.91871 0.84438 0.77639 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.27027 0.19784 0.14564 0.91414 0.83602 0.76491 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.25025 0.17986 0.13004 0.90959 0.82774 0.75361 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.23171 0.16351 0.11611 0.90506 0.81954 0.74247 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.21455 0.14864 0.10367 234u 2 3 4 5 6919 SIN3 7 8 12 13 14 15 16 17 18 19 20 I Present Value of $1.00 1% 1.5% 2% 6% 8% 10% 12% Periods 0.5% 1 5% 0.95238 0.94340 0.92593 0.90909 0.89286 0.90703 0.89000 0.85734 0.82645 0.79719 Rate per period 2.5% 3% 4% 0.99502 0.99010 0.98522 0.98039 0.97561 0.97087 0.96154 0.99007 0.98030 0.97066 0.96117 0.95181 0.94260 0.92456 0.98515 0.97059 0.95632 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.79383 0.75131 0.71178 0.98025 0.96098 0.94218 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.73503 0.68301 0.63552 0.97537 0.95147 0.92826 0.90573 0.88385 0.86261 0.82193 0.78353 0.74726 0.68058 0.62092 0.56743 0.97052 0.94205 0.91454 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.63017 0.56447 0.50663 0.96569 0.93272 0.90103 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.58349 0.51316 0.45235 0.96089 0.92348 0.88771 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.54027 0.46651 0.40388 0.95610 0.91434 0.87459 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.50025 0.42410 0.36061 10 0.95135 0.90529 0.86167 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.46319 0.38554 0.32197 11 0.94661 0.89632 0.84893 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.42888 0.35049 0.28748 0.94191 0.88745 0.83639 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.39711 0.31863 0.25668 0.93722 0.87866 0.82403 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.36770 0.28966 0.22917 0.93256 0.86996 0.81185 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.34046 0.26333 0.20462 0.92792 0.86135 0.79985 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.31524 0.23939 0.18270 0.92330 0.85282 0.78803 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.29189 0.21763 0.16312 0.91871 0.84438 0.77639 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.27027 0.19784 0.14564 0.91414 0.83602 0.76491 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.25025 0.17986 0.13004 0.90959 0.82774 0.75361 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.23171 0.16351 0.11611 0.90506 0.81954 0.74247 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.21455 0.14864 0.10367 234u 2 3 4 5 6919 SIN3 7 8 12 13 14 15 16 17 18 19 20 I

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SOLUTION To calculate how much Rosa Burnett must invest today to have 30... View the full answer