Anthony and Michelle Constantino just got married and received $20,000 in cash gifts for their wedding. How they have on their 25th anniversary if they place half of this money in a fixed-rate investment earning 8 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period? ww Click on the table icon to view the FVIF table: If they place half of this money, PV, in a fixed rate investment earning 8 percent compounded annually, the amount they will have, FV, on their 25th anniversary is $ (Round to the nearest cent.)

Anthony and Michelle Constantino just got married and received $20,000 in cash gifts for their wedding. How they have on their 25th anniversary if they place half of this money in a fixed-rate investment earning 8 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period? ww Click on the table icon to view the FVIF table: If they place half of this money, PV, in a fixed rate investment earning 8 percent compounded annually, the amount they will have, FV, on their 25th anniversary is $ (Round to the nearest cent.)

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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Pretend that you are saving up for a down payment on a car or house. Pretend that we get an inheritance of $4,000 so we put the inheritance in a special bank account that pays 4.00% APR compounded quarterly for four-years. We also decide to save $400 a quarter into this savings account to help grow our down payment. a. How much money do we have in our savings account at the end of all these years? b. How much interest do we earn in total?
To help their son buy a car on his 16th birthday, a boy's parents invest $7400 on his 10th birthday. If the investment pays 8% compounded continuously, how much is available on his 16th birthday? (Round your answer to the nearest cent.) x $ Need Help? Read It 17
You would like to provide $145,000 a year forever for your heirs. How much money must you deposit today to fund this goal if you can earn a guaranteed 5.8 percent rate of return?
(Related to The Business of Life: Saving for Your First House) (Future value) You are hoping to buy a house the future and recently received an inheritance of $18,000. You intend to use your inheritance as a down payment o your house. a. If you put your inheritance in an account that earns 8 percent interest compounded annually, how many years will be before your inheritance grows to $34,000? b. If you let your money grow for 10.25 years at 8 percent, how much will you have? c. How long will it take your money to grow to $34,000 if you move it into an account that pays 4 percent compounded annually? How long will it take your money to grow to $34,000 if you move it into an account that pays 13 percent? d. What does all this tell you about the relationship among interest rates, time, and future sums? it be before your inheritance grows to $34,000? 8.26 years (Round to one decimal place.) b. If you let your money grow for 10.25 years at 8 percent, how much will you have? (Round to the…
Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is still alive so he can appreciate the benefit of the gratitude. Your goal is to save the money he gives you so when you get older you'll have money to start a business. What will be the value of your investment if the rate you can earn on your investment is 10% compounded semi annually for 7 years?
I am not understanding how to use excel to get the answer to this. Please show excel work. Answer should be: $2,704,814
You would like to provide $113,000 a year forever for your heirs. How much money must you deposit today to fund this goal if you can earn a guaranteed 8.2 percent rate of return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Assume the same RRSP interest rates for the payment stage as the deferred stage. Hint: There are two stages here. a) Draw a timeline HERE. Comments b) Describe how you will solve this problem in one or two sentences. Work c) How long would you need to leave it in an RRSP earning 2.5% compounded semi-annually to earn $800 (end of) monthly for 20 years? Work SETTING ON PMT PV CALCULATOR BGN or END P/Y C/Y
Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $26,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $33,800. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculator. Do not round your Intermediate values. Enter your answer rounded to the nearest whole percentage. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Solve for i Present Value: Future Value Th (M $ 26,000 3 8%
Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to receive $1200 per month for 20 years. A. How much does she have to deposit if her money earns 8% interest compounded monthly? B. Find the total amount Cheryl will receive from her payout annuity.
How much does Herbert need to save each year for 10 years as a regular savings payment if he wants to retire in exactly 10 years with $1,023,000.00, can earn 13.13 percent on his savings, starts making regular savings payments in exactly 1 year, and saves an equal amount each year with one exception, which is that in 1 years, he plans to make an extra contribution of $30,600.00 to savings?(ROUND THE VALUE TO 0 DECIMAL AND ENTER THE POSITIVE VALUE)
Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be able to withdraw $1,750 each month for the two years he will be in college. Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. How much must they deposit today into the college fund? Your Answer: Answer

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