4. Deposits of P15,000.00, P18,000.00 and P25,000.00 were made in a savings account 10 years, 6 years, and 3 years ago, respectively. Determine the accumulate amount in the account today if a withdrawal of P20,000.00 and P10,000.00 were made 4 and 5 years ago, respectively. The applied interest rate is 8% compounded continuously.

4. Deposits of P15,000.00, P18,000.00 and P25,000.00 were made in a savings account 10 years, 6 years, and 3 years ago, respectively. Determine the accumulate amount in the account today if a withdrawal of P20,000.00 and P10,000.00 were made 4 and 5 years ago, respectively. The applied interest rate is 8% compounded continuously.

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

See similar textbooks

Similar questions

Compute the present value of a $5,800 deposit in year 1, and another $5,300 deposit at the end of year 4 using an 8 percent interest rate
Suppose that $3000 is deposited in a saving account at the rate of 8% per year. Determine in details the total amount on deposit at the end of 2 years if the interest is:simplecompounded annuallycompounded semi-annuallycompounded quarterlycompounded monthlycompounded dailycompounded continuously
Which of the following give the highest amount of interest for depositing the same amount of money for 2 years? 5% annual interest rate, no compounding ○ 4.94% annual interest rate, compounding semi-annually 4.92% annual interest rate, compounding monthly 4.9% annual interest rate, compounding daily 4.88% annual interest rate, compounding continuously
3. Convert 16% compounded monthly is equal to an effective interest rate. 4. Find the accumulated amount of ₱ 1000 after 5 years when deposited in a bank at rate of 16% compounded monthly
A deposit of $1000 compounds to $2500 in 5 years. The interest on this account compounds quarterly. What is the closest nominal annual rate of return? (a) 2.50% (b) 4.70% (c) 18.75% (d) 20.11%
What is the future value of the initial $10,000 deposit after 5 years? We assume current interest rate is = 6%, compounded monthly. $13,552.6 $13,512.5 $13,277.6 $13,488.5
The rates offered by a bank on deposits between $10,000 and $24,999 are shown in the following table: Term 180 to 269 days 270 to 364 days Rate. 3.15% 3.45% How much more will an investor earn from a $10,000 investment in a 364-day GIC than from two consecutive 182-day GICS? Assume that the interest rate on 180- to 269-day GICS will be the same on the renewal date as it is today. Remember that both the principal and the interest from the first 182-day GIC can be invested in the second 182-day GIC. (Use 365 days a year. Do not round the intermediate calculations. Round your final answer to 2 decimal places.) An investor will earn $ more
A bank customer saved 5000 PLN on the savings account. The deposit lasted for 2 years. For the first 6 months continuous interest rate method was used with the 4,5% nominal interest rate, for the next 9 months compound interest rate method was used, and during the last months simple interest rate method was used also with 4,5% nominal interest rate (after each change in the interest method, interest was added to the account balance). Please calculate what was the nominal interest rate in the second period if the profit from the deposit was 414,70 PLN after the whole 2 years period?
A deposit of $19,000 earns a continuous force of interest given by 0.028t for the first 5 years (t is time in years), and a constant force of 0.14 thereafter. What nominal quarterly compounding rate is earned over the first 13 years?
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given amount of years. B. Find the interest earned. Principal $7000Rate 4% Compounded Semi-annually Time 3 years
3. The difference between the future values of a deposit accumulated for 10 years at a rate of 8% compounded per annum and the future value of same deposit over the same period at 8% compounded quarterly is OR 150. Find the deposit.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS