1. Complete the following word questions:a) Bill Blum needs $40,000 6 years from todayto attend V.P.R. Tech. How much must Billput in the bank today (8% quarterly) to reachhis goal?b) Bob Fry wants to buy his grandson a FordTaurus in 4 years. The cost of a car will be$28,000. Assuming a bank rate of 4%compounded quarterly, how much must Bobput inthe bank today?

a. Amount required in 6 years = $40,000Interest rate = 8%Number of years = 6 yearsb.Cost of car =…

Answered: 1. Complete the following word…

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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1. Complete the following word questions: a) Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How much must Bill put in the bank today (8% quarterly) to reach his goal?