(Annuity payments) To pay for your child's education, you wish to have accumulated $12,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 15 percent compounded annually, how much must you deposit each year to obtain your goal? The amount of money you must deposit each year in order to obtain your goal is $. (Round to the nearest cent.) (Annuity number of periods) How long will it take to pay off a loan of $47,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $550? Use five decimal places for the monthly percentage rate in your calculations. The number of years it takes to pay off the loan is years. (Round to one decimal place.)
(Annuity payments) To pay for your child's education, you wish to have accumulated $12,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 15 percent compounded annually, how much must you deposit each year to obtain your goal? The amount of money you must deposit each year in order to obtain your goal is $. (Round to the nearest cent.) (Annuity number of periods) How long will it take to pay off a loan of $47,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $550? Use five decimal places for the monthly percentage rate in your calculations. The number of years it takes to pay off the loan is years. (Round to one decimal place.)
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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Transcribed Image Text:(Annuity payments) To pay for your child's education, you wish to have accumulated $12,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 15 percent compounded annually, how much must you deposit
each year to obtain your goal?
The amount of money you must deposit each year in order to obtain your goal is $. (Round to the nearest cent.)
Transcribed Image Text:(Annuity number of periods) How long will it take to pay off a loan of $47,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $550? Use five decimal places for the monthly percentage rate in your calculations.
The number of years it takes to pay off the loan is
years. (Round to one decimal place.)
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