1.1 Suppose you received R1000 from yourgrandparents on your 18th birthday, which was 17years ago. You put it in a savings account at a measlyfixed rate of 4,5% per year and forgot all about it untilnow. What should the account balance be now?

Savings account earn compound interest. To calculate final account balance we can use the formula…

Answered: 1.1 Suppose you received R1000 from…

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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Similar questions

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When you were born, your grandparents put $5,000 in to a money market account to help with your college education. The bank gave them a guaranteed interest rate of 6% per year until you turned 18. How much money will be in the account on your 18th birthday if you never withdraw any money until that day? $11,417.20 $54,138.00 $1751.50 $14,271.50
Suppose you are starting your savings a little bit late, 42 years old. Before that there was no savings balance. Given 10,000 at 42 years old with the compounding interest rate of 7%. Calculate the savings balance for each year after 42. There is also no additional contributions but you kept the 10,000 until you are 61 years old. *Use excel, and excel calculations to solve*
You have $10,000 in the bank today. Your only deposit was $6,700 exactly 4 years ago. What is the annual interest rate?
If you deposit money today in an account that pays 7% annual interest, how long will it take to triple your money? 13.24 years 1,570.00 years 0.35 years 16.24 years
Your grandfather put some money in an account for you on the day you were born. You are now 16 years old and are allowed to withdraw the money for the first time. The account currently has $5,311 in it and pays an 11% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25th birthday? If you left the money there until your 25th birthday, the amount in the account would be $ nearest cent.) (Round to the
Problem 3: Your parents deposit $1000 in your bank account paying 5% per year. What would be the balance in your account after 10 years?

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1.1 Suppose you received R1000 from your grandparents on your 18th birthday, which was 17 years ago. You put it in a savings account at a measly fixed rate of 4,5% per year and forgot all about it until now. What should the account balance be now?