Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixedInterest rates are used throughout this question.Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additionaldeposits or withdrawals, how much money will she have in her account in 5 years?$206.60$1,927.88$1,415.34$1,833.00

Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 5 years? $206.60 $1,927.88 $1,415.34 $1,833.00

Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 5 years? $206.60 $1,927.88 $1,415.34 $1,833.00

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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Question

Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed
Interest rates are used throughout this question.
Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional
deposits or withdrawals, how much money will she have in her account in 5 years?
$206.60
$1,927.88
$1,415.34
$1,833.00

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