. How much will you have at the end of the 26 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) . If the investment plan pays you 13 percent per year for the first 13 years and 9 percent per year for the next 13 years, how much will you have at the end of the 26 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
. How much will you have at the end of the 26 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) . If the investment plan pays you 13 percent per year for the first 13 years and 9 percent per year for the next 13 years, how much will you have at the end of the 26 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:You have $16,750 you want to invest for the next 26 years. You are offered an
investment plan that will pay you 9 percent per year for the next 13 years and 13 percent
per year for the last 13 years.
a. How much will you have at the end of the 26 years? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. If the investment plan pays you 13 percent per year for the first 13 years and 9 percent
per year for the next 13 years, how much will you have at the end of the 26 years? (Do
not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
X Answer is complete but not entirely correct.
а.
Account value
2$
133,393.92
b.
Account value
2$
3,486,634.78 ×
Expert Solution
Step 1
Future Worth:
It represents the future value of present periodic annuity payments or the future value of the present amount. It is computed by compounding the present amount or present periodic annuity payments by an interest rate.
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