An investments account offers a 12% annual return. If $35,000 is placed in the account for two years, by how much will the investment grow if interest is compounded (a) annually, (b) semiannually, (c) quarterly, or (d) monthly? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1 Initial Investment Annual Interest Rate Compounded Period Invested Future Value a. $ 35,000 12% Annually 2 years b. 35,000 12% Semiannually 2 years C. 35,000 12% Quarterly 2 years d. 35,000 12% Monthly 2 years

An investments account offers a 12% annual return. If $35,000 is placed in the account for two years, by how much will the investment grow if interest is compounded (a) annually, (b) semiannually, (c) quarterly, or (d) monthly? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1 Initial Investment Annual Interest Rate Compounded Period Invested Future Value a. $ 35,000 12% Annually 2 years b. 35,000 12% Semiannually 2 years C. 35,000 12% Quarterly 2 years d. 35,000 12% Monthly 2 years

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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What interest rate would be necessary for $6,550 investment to grow to $9,300 in an account compounded continuously for 5 years? Number % your & percentage rounded to be decimal place
An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much will be in the account in 5 years and 9 months? Round the answer to the nearest cent. P/Y = C/Y = N = I/Y = PV = PMT = FV =
Suppose you will need $43,000 in 21 years. If your bank compounds interest at an annual rate of 4%, how much will you need to deposit into your account 2 year(s) from now to reach your goal? Enter your answer rounded to two decimal places. Number
If you make quarterly deposits of $1000 for 15 years into an account that compoundsinterest at 1.5% per month, what is the value F at end of the 15-years period. (Ans. $297,381.08)(Draw the Cashflow)
You would like to contribute to a savings account over the next three years in order to accumulate enough money to take a trip to Europe. Assume an interest rate of 20%, compounded quarterly. How much will accumulate in three years by depositing $560 at the beginning of each of the next 12 quarters? Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Table, Excel, or calculator function Payment: Future Value: n= FVAD of $1 $ 560 12 5.0%
This exercise is designed to be solved using technology such as calculators or computer spreadsheets. You boribw $19,000 with a term of four years at an APR of 8%. Make an amortization table. How much equity have you built up halfway through the term? (Round your answer to two decimal places.) $ 8283.91
Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on interest. What is the APR? Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).
Suppose that an amount in Kina, is invested in a private financial institution, with interest compounded continuously at 8% per year. a). Write the equation in terms of P0 and 0.08 where P0 is the starting amount invested. And the final balance in the account is denoted with variable P b). Suppose that K2000 is invested. What is the total amount in the account after 3years? c). How many years will it take to have more then the invested amount
Suppose that you invest $5,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to calculate the compound interest (in $) on your investment.
Suppose you deposit m dollars the beginning of every month in a savings account that earns a monthly interest rate of r. For an initial investment of m dollars, the amount of money in your account at the beginning of the second month is the sum of your second deposit and your initial deposit plus interest. Denote by An the amount of money in your account in the nth month. 1. Explain why A₁ = m dollars. 2. Explain why A₂ = m+m(1+r) dollars. 3. Write down explicit expressions for A3 and A4. This is the crucial step. 4. Explain why An = m+m(1 + r) + m(1 + r)² + ... +m(1 + r)"−¹ dollars. 5. Use the formula for a geometric sum to show that An = m (1 + r)” − 1 r dollars. 6. If your account has a monthly interest rate r = 0.002 and you deposit $200 monthly for 5 years, how much money will you have in your account after the 5 years? (Hint: How many months?)
You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound amount (in $) for your investment. (Round your answer to the nearest cent.) $___________ ****(FYI: It is not $2,161.72)*****
Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually, with additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit 71 (Number of deposits) 1 2 OO B= $321158.22 (b) Suppose Ritchie makes 38 deposits. What is the balance of the account on the day immediately after the 38th deposit? 0 B$29923.47 B$29123.47 B= $264031.59 B, ($) $800 $ Number O B$291234.75 (It is more than $880.) $ Number S Number Q (c) Suppose Ritchie makes 438 deposits. Which is true about the…

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