5) You need $10,000 annually for 4 years to complete your education, starting next year. (One year (1from today you would withdraw the first $10,000.) Your uncle will deposit an amount today in abank paying 5 percent annual interest, which would provide the needed $10,000 payments.How large must the deposit be?Answer must be rounded at 2 decimals6) An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,$300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8(10percent annually,al risk earn 8a. What is its present value?b. Its future value?Answer must be rounded at 2 decimalsa.b. 5) You need $10,000 annually for 4 years to complete your education, starting next year. (One year (1from today you would withdraw the first $10,000.) Your uncle will deposit an amount today in abank paying 5 percent annual interest, which would provide the needed $10,000 payments.How large must the deposit be?Answer must be rounded at 2 decimals6) An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,(10$300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8percent annually,atheof equal risk earn 8a. What is its present value?b. Its future value?Answer must be rounded at 2 decimalsa.b.

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5) You need $10,000 annually for 4 years to complete your education, starting next year. (One year from today you would withdraw the first $10,000.) Your uncle will deposit an amount today in a bank paying 5 percent annual interest, which would provide the needed $10,000 payments. How large must the deposit be? Answer must be rounded at 2 decimals

5) You need $10,000 annually for 4 years to complete your education, starting next year. (One year from today you would withdraw the first $10,000.) Your uncle will deposit an amount today in a bank paying 5 percent annual interest, which would provide the needed $10,000 payments. How large must the deposit be? Answer must be rounded at 2 decimals

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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You would like to have $37,000 in 5 years for the down payment on a new house following college graduation by making deposits at the end of every three months in an annuity that pays 4.25% compounded quarterly. How much should you deposit at the end of every three months? How much of the $37,000 comes from deposits and how much comes from interest?
Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for $45004500 and plan to begin paying it back on December 1 after graduation and grace period 27 months later. The interest rate is 6.8%. How much of what you will owe will be interest?$Round your answer to the nearest cent.
Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent.
You plan to buy property in Florida 8 years from today. To do this, you estimate that you will need $ 45000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits into your savings account, which pays 9% annually. If you make your first deposit at the end ofthis year, and you would like your accountto reach$ 45000 when the final deposit is made, what amount do you need to deposit annually?
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS3.- Andres Rosas wants to know how much he must deposit today, so that in 5 years he will have the amount (FV) of 88,180.00, which he needs to pay for a trip, a) if the account pays 6.125% interest compoundable semiannually; b) if the account pays 7.65% compoundable monthly. The formula must be cleared to find the initial value (PV). Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. TO CONSIDER THE YEAR AS 360 DAYS (WHICH IS COMMERCIAL) (only if required)
3) Your father planned for your study at BUC and saved for 5 years before your registration OMR 1200 each year at Nizwa Bank. Suppose that the Interest Rate on such deposit was 11% annually. Questions: a. Set up the time line b. What is the FV of those payments?
Starting next year, you will need $15,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $15,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $15,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $
You need to have $18,000 to pay for your car in 7 years. How much do you need to deposit today in a bank that pays 5% interest, compounded annually, in order to achieve your goal?
A couple wants to set up a college savings account for their grandchild. If the account earns 4.4% interest compounded quarterly, how much should they invest today so that the account will be worth $50,000 in 18 years? Round your final answer to two decimal places.
Check My Work еВook Starting next year, you will need $20,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $20,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $20,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $
How much would be in your savings account in 7 years after depositing $350 today if the bank pays 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.) (a) How much (in $) would the account be worth after 10 years? $ (b) How much (in $) would the account be worth after 20 years? $ (c) When you retire in 30 years, what will be the total worth (in $) of the account? $ (d) If you found a bank that paid 6% interest compounded annually rather than 3%, how much (in $) would you have in the account after 30 years? $ (e) Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $750 at the beginning of each month instead of $9,000 at the beginning of each year. $ Submit Ancworl

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