4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 7% effective annual interest. How much is in the second account after 35 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year Amount in 1st account Amount deposited into 2nd account 0 1 2 3 ⠀ ⠀ 34 35

4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 7% effective annual interest. How much is in the second account after 35 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year Amount in 1st account Amount deposited into 2nd account 0 1 2 3 ⠀ ⠀ 34 35

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

Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 11 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 26 years after the plan began? (Round your answer to the nearest cent.) $
In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? What is the amount in the account after 5 years? $ (Round to the nearest cent as needed.)
Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $11,500 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
In order to accumulate enough money for a down payment on a house, a couple deposits $273 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 3 years? What is the amount in the account after 3 years? (Round to the nearest cent as needed.)
Please provide both solution
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 14 years before new obligations make it impossible to continue. How much money has accrued in the account at the end of the 14 years? (Round your answer to the nearest cent.) $ If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 29 years after the plan began? (Round your answer to the nearest cent.) $
Kia deposited $1,100, at the BEGINNING of each year for 25 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. A. $73,441.24 B. $80,416.53 C. $86,849.86 D. $87,949.86
Lorna deposited $1,400, at the beginning of every six months for 13 years, in an account at her credit union. If the account paid 8% interest, compounded semiannually, use Table 12-1 from your text to find the future value of her account. $58,304.27 $62,036.44 $64,517.90 $69,954.62
Solve by Formula Serena Williams deposits $1,500 into an account at the beginning of each year. If she earns 5%, compounded annually, how much will the account be worth in 17 years?
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 13 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 28 years after the plan began? (Round your answer to the nearest cent.)
A person decides to pay at the beginning of each semester for 6 years the sum of $3315. Calculate the interest rate compounded semi-annually that will have to be credited on these payments so that she can accumulate the sum of $51,803. a. 4.6816% b. (93632%, 2) c. (8%, 2) d. 8% What would be answer ?
Laura saves $22 at the end of each week and deposits the money in an account paying 8% compounded semi-annually. How much will Laura accumulate in 4 years? How much of the accumulated amount is interest? Laura will accumulate $ in 4 years. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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