Malcolm anticipates his college tuition and books to be $50,000 in 3 years. His family recommends an investment that pays 8% interest compounded quarterly. Use the present value table to calculate how much Malcolm should invest today. \(\begin{array}{l}
\begin{array}{ccccc}
\hline n & 0.5 \% & 1 \% & 1.5 \% & 2 \% \
\hline 1 & 0.99502488 & 0.99009901 & 0.98522167 & 0.98039216 \
2 & 0.99007450 & 0.98029605 & 0.97066175 & 0.96116878 \
3 & 0.98514876 & 0.97059015 & 0.95631699 & 0.94232233 \
4 & 0.98024752 & 0.96098034 & 0.94218423 & 0.92384543 \
5 & 0.97537067 & 0.95146569 & 0.92826033 & 0.90573081 \
\
6 & 0.97051808 & 0.94204524 & 0.91454219 & 0.88797138 \
7 & 0.96568963 & 0.93271805 & 0.90102679 & 0.87056018 \
8 & 0.96088520 & 0.92348322 & 0.88771112 & 0.85349037 \
9 & 0.95610468 & 0.91433982 & 0.87459224 & 0.83675527 \
10 & 0.95134794 & 0.90528695 & 0.86166723 & 0.82034830 \
\
11 & 0.94661487 & 0.89632372 & 0.84893323 & 0.80426304 \
12 & 0.94190534 & 0.88744923 & 0.83638742 & 0.78849318 \
13 & 0.93721924 & 0.87866260 & 0.82402702 & 0.77303253 \
14 & 0.93255646 & 0.86996297 & 0.81184928 & 0.75787502 \
15 & 0.92791688 & 0.86134947 & 0.79985150 & 0.74301473 \
\
16 & 0.92330037 & 0.85282126 & 0.78803104 & 0.72844581 \
17 & 0.91870684 & 0.84437749 & 0.77638526 & 0.71416256 \
18 & 0.91413616 & 0.83601731 & 0.76491159 & 0.70015937 \
19 & 0.90958822 & 0.82773992 & 0.75360747 & 0.68643076 \
20 & 0.90506290 & 0.81954447 & 0.74247042 & 0.67297133
\end{array}
\begin{array}{ccc}
\hline 3 \% & 4 \% & 5 \% \
\hline 0.97087379 & 0.96153846 & 0.95238095 \
0.94259591 & 0.92455621 & 0.90702948 \
0.91514166 & 0.88899636 & 0.86383760 \
0.88848705 & 0.85480419 & 0.82270247 \
0.86260878 & 0.82192711 & 0.78352617 \
\
0.83748426 & 0.79031453 & 0.74621540 \
0.81309151 & 0.75991781 & 0.71068133 \
0.78940923 & 0.73069021 & 0.67683936 \
0.76641673 & 0.70258674 & 0.64460892 \
0.74409391 & 0.67556417 & 0.61391325 \
\
0.72242128 & 0.64958093 & 0.58467929 \
0.70137988 & 0.62459705 & 0.55683742 \
0.68095134 & 0.60057409 & 0.53032135 \
0.66111781 & 0.57747508 & 0.50506795 \
0.64186195 & 0.55526450 & 0.48101710 \
\
0.62316694 & 0.53390818 & 0.45811152 \
0.60501645 & 0.51337325 & 0.43629669 \
0.58739461 & 0.49362812 & 0.41552065 \
0.57028603 & 0.47464242 & 0.39573396 \
0.55367575 & 0.45638695 & 0.37688948
\end{array}
\end{array}\)

Question

Malcolm anticipates his college tuition and books to be $50,000 in 3 years. His family recommends an investment that pays 8% interest compounded quarterly. Use the present value table to calculate how much Malcolm should invest today. \(\begin{array}{l}
\begin{array}{ccccc}
\hline n & 0.5 \% & 1 \% & 1.5 \% & 2 \% \
\hline 1 & 0.99502488 & 0.99009901 & 0.98522167 & 0.98039216 \
2 & 0.99007450 & 0.98029605 & 0.97066175 & 0.96116878 \
3 & 0.98514876 & 0.97059015 & 0.95631699 & 0.94232233 \
4 & 0.98024752 & 0.96098034 & 0.94218423 & 0.92384543 \
5 & 0.97537067 & 0.95146569 & 0.92826033 & 0.90573081 \
 \
6 & 0.97051808 & 0.94204524 & 0.91454219 & 0.88797138 \
7 & 0.96568963 & 0.93271805 & 0.90102679 & 0.87056018 \
8 & 0.96088520 & 0.92348322 & 0.88771112 & 0.85349037 \
9 & 0.95610468 & 0.91433982 & 0.87459224 & 0.83675527 \
10 & 0.95134794 & 0.90528695 & 0.86166723 & 0.82034830 \
 \
11 & 0.94661487 & 0.89632372 & 0.84893323 & 0.80426304 \
12 & 0.94190534 & 0.88744923 & 0.83638742 & 0.78849318 \
13 & 0.93721924 & 0.87866260 & 0.82402702 & 0.77303253 \
14 & 0.93255646 & 0.86996297 & 0.81184928 & 0.75787502 \
15 & 0.92791688 & 0.86134947 & 0.79985150 & 0.74301473 \
 \
16 & 0.92330037 & 0.85282126 & 0.78803104 & 0.72844581 \
17 & 0.91870684 & 0.84437749 & 0.77638526 & 0.71416256 \
18 & 0.91413616 & 0.83601731 & 0.76491159 & 0.70015937 \
19 & 0.90958822 & 0.82773992 & 0.75360747 & 0.68643076 \
20 & 0.90506290 & 0.81954447 & 0.74247042 & 0.67297133
\end{array}
\begin{array}{ccc}
\hline 3 \% & 4 \% & 5 \% \
\hline 0.97087379 & 0.96153846 & 0.95238095 \
0.94259591 & 0.92455621 & 0.90702948 \
0.91514166 & 0.88899636 & 0.86383760 \
0.88848705 & 0.85480419 & 0.82270247 \
0.86260878 & 0.82192711 & 0.78352617 \
 \
0.83748426 & 0.79031453 & 0.74621540 \
0.81309151 & 0.75991781 & 0.71068133 \
0.78940923 & 0.73069021 & 0.67683936 \
0.76641673 & 0.70258674 & 0.64460892 \
0.74409391 & 0.67556417 & 0.61391325 \
 \
0.72242128 & 0.64958093 & 0.58467929 \
0.70137988 & 0.62459705 & 0.55683742 \
0.68095134 & 0.60057409 & 0.53032135 \
0.66111781 & 0.57747508 & 0.50506795 \
0.64186195 & 0.55526450 & 0.48101710 \
 \
0.62316694 & 0.53390818 & 0.45811152 \
0.60501645 & 0.51337325 & 0.43629669 \
0.58739461 & 0.49362812 & 0.41552065 \
0.57028603 & 0.47464242 & 0.39573396 \
0.55367575 & 0.45638695 & 0.37688948
\end{array}
\end{array}\)

Quizplus · Accepted Answer

The Answer of Malcolm anticipates his college tuition and books to be $50,000 in 3 years. His family recommends an investment that pays 8% interest compounded quarterly. Use the present value table to calculate how much Malcolm should invest today. \(\begin{array}{l}
\begin{array}{ccccc}
\hline n & 0.5 \% & 1 \% & 1.5 \% & 2 \% \
\hline 1 & 0.99502488 & 0.99009901 & 0.98522167 & 0.98039216 \
2 & 0.99007450 & 0.98029605 & 0.97066175 & 0.96116878 \
3 & 0.98514876 & 0.97059015 & 0.95631699 & 0.94232233 \
4 & 0.98024752 & 0.96098034 & 0.94218423 & 0.92384543 \
5 & 0.97537067 & 0.95146569 & 0.92826033 & 0.90573081 \
 \
6 & 0.97051808 & 0.94204524 & 0.91454219 & 0.88797138 \
7 & 0.96568963 & 0.93271805 & 0.90102679 & 0.87056018 \
8 & 0.96088520 & 0.92348322 & 0.88771112 & 0.85349037 \
9 & 0.95610468 & 0.91433982 & 0.87459224 & 0.83675527 \
10 & 0.95134794 & 0.90528695 & 0.86166723 & 0.82034830 \
 \
11 & 0.94661487 & 0.89632372 & 0.84893323 & 0.80426304 \
12 & 0.94190534 & 0.88744923 & 0.83638742 & 0.78849318 \
13 & 0.93721924 & 0.87866260 & 0.82402702 & 0.77303253 \
14 & 0.93255646 & 0.86996297 & 0.81184928 & 0.75787502 \
15 & 0.92791688 & 0.86134947 & 0.79985150 & 0.74301473 \
 \
16 & 0.92330037 & 0.85282126 & 0.78803104 & 0.72844581 \
17 & 0.91870684 & 0.84437749 & 0.77638526 & 0.71416256 \
18 & 0.91413616 & 0.83601731 & 0.76491159 & 0.70015937 \
19 & 0.90958822 & 0.82773992 & 0.75360747 & 0.68643076 \
20 & 0.90506290 & 0.81954447 & 0.74247042 & 0.67297133
\end{array}
\begin{array}{ccc}
\hline 3 \% & 4 \% & 5 \% \
\hline 0.97087379 & 0.96153846 & 0.95238095 \
0.94259591 & 0.92455621 & 0.90702948 \
0.91514166 & 0.88899636 & 0.86383760 \
0.88848705 & 0.85480419 & 0.82270247 \
0.86260878 & 0.82192711 & 0.78352617 \
 \
0.83748426 & 0.79031453 & 0.74621540 \
0.81309151 & 0.75991781 & 0.71068133 \
0.78940923 & 0.73069021 & 0.67683936 \
0.76641673 & 0.70258674 & 0.64460892 \
0.74409391 & 0.67556417 & 0.61391325 \
 \
0.72242128 & 0.64958093 & 0.58467929 \
0.70137988 & 0.62459705 & 0.55683742 \
0.68095134 & 0.60057409 & 0.53032135 \
0.66111781 & 0.57747508 & 0.50506795 \
0.64186195 & 0.55526450 & 0.48101710 \
 \
0.62316694 & 0.53390818 & 0.45811152 \
0.60501645 & 0.51337325 & 0.43629669 \
0.58739461 & 0.49362812 & 0.41552065 \
0.57028603 & 0.47464242 & 0.39573396 \
0.55367575 & 0.45638695 & 0.37688948
\end{array}
\end{array}\)

Malcolm Anticipates His College Tuition and Books to Be $50,000