At the end of each quarter, Patti deposits $1,600 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in 3 years? Multiple Choice $22,455. $23,964. $23,436
At the end of each quarter, Patti deposits $1,600 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in 3 years? Multiple Choice $22,455. $23,964. $23,436
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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Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
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At the end of each quarter, Patti deposits $1,600 into an account that pays 12% interest compaunded quarterly. How much will Patti have in the
account in 3 years?
Multiple Choice
$22,455.
$23,964
$23,436
$22,707.
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Transcribed Image Text:Present and future value tables of $1 at 3% are presented below:
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1.03000 0.97087
1.0000
0.97087
1.0300
1.00000
2.
1.06090 0.94260
2.0300
1.91347
2.0909
1.97087
3 1.09273 0.91514
3.0909
2.82861
3.1836
2.91347
4 1.12551 0.88849
4.1836
3.71710
4.3091
3.82861
1.15927 0.86261
5.3091
4.57971
5.4684
4.71710
9.
1.19405 0.83748
6.4684
5.41719
6.6625
5.57971
7 1.22987 0.81309
7.6625
6.23028
7.8923
6.41719
8 1.26677 0.78941
8.8923
7.01969
9.1591
7.23028
9.
1.30477 |0.76642
10.1591
7.78611
10.4639
8.01969
10 1.34392 0.74409
11.4639
8.53020
11.8078
8.78611
11 1.38423 0.72242
12.8078
9.25262
13.1920
9.53020
12 1.42576 0.70138
14.1920
9.95400
14.6178 10.25262
13 1.46853 0.68095
15.6178 10.63496
16.0863 10.95400
14 1.512590.66112
17.0863 11.29607
17.5989 11.63496
15 1.55797 0.64186
18.5989 11.93794
19.1569 12.29607
16 1.60471 0.62317
20.1569 12.56110
20.7616 12.93794
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