a. Use the appropriate formula to determine the periodic deposit.b. How much of the financial goal comes from deposits and how much comes from interest?Periodic DepositRate$? at the end of each month 6.75% compounded monthlyi Click the icon to view some finance formulas.Time45 yearsFinancial Goal$1,250,000a. The periodic deposit is $(Do not round until the final answer. Then round up to the nearest dollar as needed.)

Future value is the value that an investment will have in the future after earning a certain rate of…

a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of each month Rate 6.75% compounded monthly Time 45 years Financial Goal $1,250,000

a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of each month Rate 6.75% compounded monthly Time 45 years Financial Goal $1,250,000

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. Use the appropriate formula to determine the periodic deposit.
b. How much of the financial goal comes from deposits and how much comes from interest?
Periodic Deposit
Rate
$? at the end of each month 6.75% compounded monthly
i Click the icon to view some finance formulas.
Time
45 years
Financial Goal
$1,250,000
a. The periodic deposit is $
(Do not round until the final answer. Then round up to the nearest dollar as needed.)

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Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A

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