4. A large corporation has invested $1 million in certificate of de- posits (CD). The CDs py 8% per year compounded semiannu- ally. How much will the CDs be worth in 8 years? 5. Jerry would like to purchase a new car in 4 years. He deposits $3,500 in an account that pays 7% per year compounded monthly. How much will he have towards the purchase of the car in 4 years?
4. A large corporation has invested $1 million in certificate of de- posits (CD). The CDs py 8% per year compounded semiannu- ally. How much will the CDs be worth in 8 years? 5. Jerry would like to purchase a new car in 4 years. He deposits $3,500 in an account that pays 7% per year compounded monthly. How much will he have towards the purchase of the car in 4 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
Related questions
Question
4 and 5 please
![Which formula would you use for each of the following problems?
A. I= Prt
B. F= P(1 +1)"
!!
C. P= F(1+1)*
1. How much simple interest will be earned on an $800 deposit in
an account that earns 2.3% simple interest per year over a pe-
riod of 5 months?
2. Kyrie borrowed $3,000 from her parents to buy some furniture.
Her parents will charge her 3.25% simple interest per year. Her
parents want the loan repaid in 1.5 years. How much will Kyrie
owe her parents in 1.5 years?
3. In a certain town child daycare rates have been rising at the rate
of 7% per year compounded annually. If 2 years ago the rate per
week was $150, how much would you expect to pay today for
one week of daycare?
4. A large corporation has invested $1 million in certificate of de-
posits (CD). The CDs py 8% per year compounded semiannu-
ally. How much will the CDs be worth in 8 years?
5. Jerry would like to purchase a new car in 4 years. He deposits
$3,500 in an account that pays 7% per year compounded
monthly. How much will he have towards the purchase of the
car in 4 years?.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F893fb7a2-64a8-4489-9027-485da25abf79%2F8609ec54-0874-421f-9dae-f34caf73bb81%2Fkysji39_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which formula would you use for each of the following problems?
A. I= Prt
B. F= P(1 +1)"
!!
C. P= F(1+1)*
1. How much simple interest will be earned on an $800 deposit in
an account that earns 2.3% simple interest per year over a pe-
riod of 5 months?
2. Kyrie borrowed $3,000 from her parents to buy some furniture.
Her parents will charge her 3.25% simple interest per year. Her
parents want the loan repaid in 1.5 years. How much will Kyrie
owe her parents in 1.5 years?
3. In a certain town child daycare rates have been rising at the rate
of 7% per year compounded annually. If 2 years ago the rate per
week was $150, how much would you expect to pay today for
one week of daycare?
4. A large corporation has invested $1 million in certificate of de-
posits (CD). The CDs py 8% per year compounded semiannu-
ally. How much will the CDs be worth in 8 years?
5. Jerry would like to purchase a new car in 4 years. He deposits
$3,500 in an account that pays 7% per year compounded
monthly. How much will he have towards the purchase of the
car in 4 years?.
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