Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to sho accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account b at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your ed expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest End Balance

Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to sho accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account b at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your ed expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest End Balance

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

am. 85.
If a person spends $6 a week on coffee (assume $300 a year), what would be the future value of that amount over 8 years if the funds were deposited in an account earning 3 percent?
LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5% with monthly payments of $673.65. How much will she spend on interest over the life of the loan? Round your answer to the nearest cent. Use the spreadsheet to solve.
You are considering the tax consequences of investing $2,000 at the end of each year for 30 years in a tax-sheltered retirement account that will earn 9 percent annually. How much will you accumulate over 30 years if the growth in the investment remains sheltered from taxes? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response Submit
You deposited $150 the first year in an account that earns 12% annual interest. You also deposited $300 and $350 the second and fourth year respectively in that account with the same interest rate. All the deposits happened at the beginning of the years. How much money do get in that account at the end of the fourth year? Check your answer with interest table.
Formulate a system of equations for the situation below and solve. Michael Perez has a total of $2900 on deposit with two savings institutions. One pays interest at the rate of 6% / year, whereas the other pays interest at the rate of 8% / year. If Michael earned a total of $212 in interest during a single year, how much does he have on deposit in each institution? at 6%/year $ at 8%/year $
When payments are made at the end of each period, you will treat them as . You are planning to put $2,000 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a new boat. If you are investing at an annual interest rate of 6%, you’ll have accumulated at the end of eight years. You decided to deposit your money in the bank at the beginning of the year instead of the end of the same year, but now you are making payments of $2,250 at an annual interest rate of 8%. How much money will you have available at the end of four years? $16,509 $16,070 $10,950 $15,874
Use the attached present and future value tables to answer the following questions: Tom pays $2,400 per year for rent on the first of January each year. He wants to deposit an amount in his 6% investment today that will allow him to draw $2,400 each year for the next 5 years. How much will he need to deposit today in order to draw $2,400 per year for 5 years? Round percentages and ratios to the nearest tenth of a percent, dollars to nearest whole dollar ________dollars
Beginning three months from now, you want to be able to withdraw $2,600 each quarter from your bank account to cover college expenses over the next four years. If the account pays .66 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?
Assume you won the state lottery and you are entitled to $5,000,000. If you choose not to take the money right away but wish to be paid weekly, you estimate that you will want to receive this cash flow over the next 10 years. How much will your weekly payment be at an interest rate of 5% ?
Your uncle has agreed to deposit $3000 in your brokerage account at the beginning today for five years. You estimate that you can earn 9% per year on your investments. How much will you have in your account at the beginning of year 4?
Your mother has asked you to help her with an investment. She has $6,000 to invest today for 3 years. You've identified a CD at a bank that pays a nominal rate of interest of 5.08%, with interest paid quarterly. What will be the value of this investment 3 years from now?

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

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

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