5-6. (Compound value) Obaidullah Hamzah, who recently sold his Förd Mustang, placed $15,000 in a savings account paying annual compound interest of 7 percent. a. Calculate the amount of money that will be accrued if he leaves the money in the bank for 1,5, and 15 years. b. If he moves his money into an account that pays 8 percent or one that 10 percent, rework part (a) using these new rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this problem? pays

5-6. (Compound value) Obaidullah Hamzah, who recently sold his Förd Mustang, placed $15,000 in a savings account paying annual compound interest of 7 percent. a. Calculate the amount of money that will be accrued if he leaves the money in the bank for 1,5, and 15 years. b. If he moves his money into an account that pays 8 percent or one that 10 percent, rework part (a) using these new rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this problem? pays

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

6.
Russell bought a new hot tub today from Situation Hot Tubs. What is the present value of the cash flows associated with this transaction if the discount rate is 5.70 percent, he will receive a rebate of $527.00 from Situation Hot Tubs in 1 year, and he will pay $3,973.00 to Situation Hot Tubs in 4 years? Note: the correct answer is less than zero. $-2684.29(plus or minus 10$) $-3681.45(plus or minus 10$) $-2760.68(plus or minus 10$) $-2655.87(plus or minus 10$) None of the above has plus or minus $10 to correct answer
can you please explain how they got this question?
1. Engr. Johnson started saving ₱2000.00 each year for 25 years until his retirement at 65 years old. A year after he retired, he withdrew ₱10000.00 for a period of 5 years. In the ninth and tenth years, he decided to only withdrew ₱5000.00 per year. In the twelfth year, he withdraws the remaining money in his account. If the interest rate was 9% per year: a) Draw the Cash flow diagram with function symbols. b) What was the final withdrawal from his account?
please solve it as soon as possible
Q6) Lewis Litt is saving up for his daughter's law school education by depositing $1,000 monthly for 18 years into a savings account earning 6% compounded annually. She will then make end of quarterly withdrawals from that same account for 9 years while in law school. How large will those quarterly withdrawals be if the rate stays the same for the entire timeline of 27 years?
Q2.2: Since the birth of his granddaughter, 15 years ago, Michael has deposited $150 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.75% compounded monthly for the first 8 years and 4.25% compounded monthly for the next 7 years. a. What was the accumulated value of the RESP at the end of 8 years? b. What was the accumulated value of the RESP at the end of 15 years? c. What was the amount of interest earned over the 15-year period? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
Subject;
A young couple buying their first home borrow $90,000 for 30 years at 7.4%, compounded monthly, and make payments of $623.14. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. (Round your answer to the nearest cent.) (b) How many regular payments of $623.14 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. (c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.) (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.) (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your answer from part (b). Round your answer to the nearest cent.)
With cash flow diagram. Mia purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and financed the $12,000 balance payable in 4 years but in monthly installments. The interest rate is 9% compounded monthly, and the loan will be repaid in equal monthly instalments for first two years and double it on the next two years. What is Mia's monthly car payment? a)576.3 b)205.20 c)274.11 d)372.12

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