An investor placed $2,000 per year atthe end of each year into aninvestment account. Immediatelyafter the 15th payment, the value ofmoney in the account was $58,720.What is the average annual rate ofreturn the investor has earned on theaccount? Group of answer choices7.0% 9.0% 5.1% 6.3%

Answered: Image /qna-images/answer/c23ab2bb-31fb-491b-a97e-ca33e76269fb.jpg

Answered: An investor placed $2,000 per year at…

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

See similar textbooks

Similar questions

The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $ 11,500 12% Quarterly Elaine 14,500 8 Semiannually George 21,500 7 Annually Kramer 17,500 9 Annually Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? ________________________________________________________ I don't understand how to convert the years to months or time periods to be able to work this problem
On January 1, 2020, Martha invested $3,500. During 2020, Martha's investment earned 7%, and inflation increased by 4%. What was Martha's real rate of return? 4.00% 2.88% 5.00% 7.00% 3.00%
Subject: acounting
Sah
a. Find the FV of $1,000 invested to earn 10% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%, 4%, and 25% after 0 , 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Year 0 1 2 3 4 5 $ $ $ $ $ $ 0% $ $ $ $ $ $ Interest Rate 4% $ $ $ $ $ $ 25%
A woman opens an account with $750 and then adds $500 at the end of each 6-month period for 10 years. The account earns 6% interest per year, compounded every 6 months. Find the total value of the investment (in $) at the end of the 10 years. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. Type your answer
te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per year, how much money will be in the account at the end of that time period?
Suppose you deposit $1,681.00 into an account today that earns 11.00% p.a. It will take years for the account to be worth $2,936.00.
F2
Subject - account Please help me. Thankyou.
Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the 1st year and $625 at the end of the 2nd year, into the account. The RRSP was earning 3.20% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 5 years? Round to the nearest cent
You want to retire in 40 years as a millionaire (i.e., to have $1,000,000). If 6% is the average rate of return on the investment during this time period, then how much should you invest per month starting at the end of this month? a. $702 b. $602 C. $802 d. $502

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

An investor placed $2,000 per year at the end of each year into an investment account. Immediately after the 15th payment, the value of money in the account was $58,720. What is the average annual rate of return the investor has earned on the account? Group of answer choices 7.0% 9.0% 5.1% 6.3%