1) you open an Account to house. The Acce SAVE for ecount has an APR of 1.27 Compounded quarterly. You plan to make an initial and quarterly deposits of $450.00 for 5 years. contributions? a ^) After 5 years, what is the total of What is the total interest earned ? B) How much will $ I 7 year 2 years? 5 years: -> $ ST you your downpayment st 2 jist have in the Account after: c) What would happen if you used a bank that offered APR of 1.15% compounded daily? (still contributing $450 quarterly) Would account after 5 years. have had more in the you want to make. downpayment of 10% on a D) If you #1 $150,000 condo, how many quarterly contributions of $450 would you have to make into the 1st Account? e) seupsose you were given a CD (5 years out 7% APR Monthly) worth $5000, if you combine the CD with the Account will you have enough for the 10% down payment in 5 years?
1) you open an Account to house. The Acce SAVE for ecount has an APR of 1.27 Compounded quarterly. You plan to make an initial and quarterly deposits of $450.00 for 5 years. contributions? a ^) After 5 years, what is the total of What is the total interest earned ? B) How much will $ I 7 year 2 years? 5 years: -> $ ST you your downpayment st 2 jist have in the Account after: c) What would happen if you used a bank that offered APR of 1.15% compounded daily? (still contributing $450 quarterly) Would account after 5 years. have had more in the you want to make. downpayment of 10% on a D) If you #1 $150,000 condo, how many quarterly contributions of $450 would you have to make into the 1st Account? e) seupsose you were given a CD (5 years out 7% APR Monthly) worth $5000, if you combine the CD with the Account will you have enough for the 10% down payment in 5 years?
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
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Transcribed Image Text:1) you open
`on
an Account to
SAVE for
downpayment
house. The Account has an APR of 1.2%
initial
compounded quarterly. You plan to make an
and quarterly deposits of $450." for 5 years.
contributions?
^) After 5 years, what is the total of
your
What is the total interest earned?
B) How much will
$
i
7
year
7
2 years!
5 years
$
you
il
D) If you
$150,000 condo,
want to make.
conde, how
of $450 would
you
e) suppose you
if
c) What would happen if you used a bank that offered
APR of 1.15% Compounded daily? (still contributing
have had more in the
$450 quarterly) Would
account after 5 YEARS
#
have in the Account after:
you
甘
7
jist
downpayment of 10% on a
many, quarterly contributions
have to make into the 1st Account?
CD (5 years out 7% APR. Monthly)
at
were given A
worth $5000,
you
combine the CD with the Account will
you have enough for the 10% down payment in 5 years?
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