a) Complete the following table for the first 4 periods of an annuity that pays 8.2% compounded monthly. You are making $250 payments at the end of each period. Your initial deposit is $3000. Period Interest earned Payment Ending Balance ---- ---- 3000.00 1 2 3 4 b) How much will be in your account at the end of the 4th period? ____________ c) How much did you contribute? _________________ d) How much interest was earned? _______________
a) Complete the following table for the first 4 periods of an annuity that pays 8.2% compounded monthly. You are making $250 payments at the end of each period. Your initial deposit is $3000. Period Interest earned Payment Ending Balance ---- ---- 3000.00 1 2 3 4 b) How much will be in your account at the end of the 4th period? ____________ c) How much did you contribute? _________________ d) How much interest was earned? _______________
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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Question
- a) Complete the following table for the first 4 periods of an
annuity that pays 8.2% compounded monthly. You are making $250 payments at the end of each period. Your initial deposit is $3000.
|
Period |
Interest earned |
Payment |
Ending Balance |
|
|
---- |
---- |
3000.00 |
|
1 |
|
|
|
|
2 |
|
|
|
|
3 |
|
|
|
|
4 |
|
|
|
- b) How much will be in your account at the end of the 4th period? ____________
- c) How much did you contribute? _________________
- d) How much interest was earned? _______________
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