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6. Determine the accumulated balance: $1200 invested in an account that cams interest at an APR of 3.7%, compounded continuously for 5 years.

6. Determine the accumulated balance: $1200 invested in an account that cams interest at an APR of 3.7%, compounded continuously for 5 years.

Essentials Of Investments
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
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6. Determine the accumulated balance: S1200 invested in an account that earms interest at an APR of 3.7%, compounded continuously for 5 years. 7. Suppose that you invest in an account with an APR of 3.9%, compounded continuously. Determine the annual percentage yield (APY). State your answer to the nearest hundredth of a percent. 8. Suppose that you want to have $7200 to put toward a down payment on a house in 5 years. How much will you need to deposit now if you can obtain an APR of 5.4%, compounded semiannually? Assume that no additional deposits are to be made to the account. 9. Suppose that you want to have a $50,000 retirement fund after 40 years. How much will you need to deposit now if you can obtain an APR of 3.3%, compounded continuously? Assume that no additional are to be made to the account.
Transcribed Image Text:6. Determine the accumulated balance: S1200 invested in an account that earms interest at an APR of 3.7%, compounded continuously for 5 years. 7. Suppose that you invest in an account with an APR of 3.9%, compounded continuously. Determine the annual percentage yield (APY). State your answer to the nearest hundredth of a percent. 8. Suppose that you want to have $7200 to put toward a down payment on a house in 5 years. How much will you need to deposit now if you can obtain an APR of 5.4%, compounded semiannually? Assume that no additional deposits are to be made to the account. 9. Suppose that you want to have a $50,000 retirement fund after 40 years. How much will you need to deposit now if you can obtain an APR of 3.3%, compounded continuously? Assume that no additional are to be made to the account.
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