You expect to have the given amount in an account with the given terms. Find how much you can withdrawperiodically in order to make the account last the specified amount of time. Round your answer to thenearest cent.Account balance:$500,000Interest rate:2.1%Frequencymonthly21 yearsTime:Periodic Withdraw: $

Formula to calculate periodic withdrawal is: P0 = d(1 - (1+r/k)^-Nk) r/k Where P0…

Answered: You expect to have the given amount in…

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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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 Time Financial Goal $? at the end of each month 6.25% compounded monthly 45 years $1,000,000 a.The periodic deposit is $______. (Do not round until the final answer. Then round up to the nearest dollar asneeded.)
Find the periodic withdrawals PMT for the given annuity account. HINT [See Quick Example 4.1 (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $500,000 at 5%, paid out quarterly for 20 years PMT = $ Need Help? Read It
Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. 5-year computer loan for $3380 at 6.4%; remaining balance after 2 years. The monthly payment is $ (Round to the nearest cent as needed.)
Compute and compare the following interests situations if you deposit $2500 into an account with 3.5% interest for 10 years. 20) The account pays simple interest. 21) The account pays compounding interest monthly. 22) The account pasy continuously compounding interest. 23) How much difference is there between the three different types of interest? Explain.
How much would you need to deposit in an account now in order to have $2000 in the account in 15 years? Assume the account earns 2% interest compounded annually. Round your answer to the nearest cent. (Note: this is a one-time deposit, not an annual deposit.)
You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places. -Be sure to use the correct annual interest rate when determining the required annual deposit (i.e. you must use the effective annual interest rate) -Use 365 days for the number of days in a year
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your credit card has a balance of $4,500 and an annual interest rate of 16%. you decide to pay off the balance over 3 years. if there are no further purchases charged to the card, a.- how much must you pay each month? b.-what is the total interest paid over 3 years?
Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,200 is deposited quarterly for 20 years at 3% per year FV = $ Need Help? Read It Watch It Submit Answer
You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $700,000 Interest rate: 4.65% monthly 17 years Frequency Time: Periodic Withdraw: $
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