A small business owner deposits $5000 monthly deposits in an equity fund as his financial analysis sees a positive outlook in the coming years. The fund gives an ave interest rate of 6% per year, compounded monthly. How much would the fund be worth after 15 years? (use 4 decimal places for computation of i)

A small business owner deposits $5000 monthly deposits in an equity fund as his financial analysis sees a positive outlook in the coming years. The fund gives an ave interest rate of 6% per year, compounded monthly. How much would the fund be worth after 15 years? (use 4 decimal places for computation of i)

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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An investor needs $22,000 in 11 years. (a) What amount should be deposited in a fund at the end of each quarter at 5% compounded quarterly so that there will be enough money in the fund? (b) Find the investor's quarterly deposit if the money is deposited at 4.2% compounded quarterly. (a) The deposit should be $. (Round to the nearest cent as needed.)
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