Beverly Hills started a paper route on January 1. Every three months, she deposits $800 in her bank account, which earns 8 percent annually but is compounded quarterly. Four years later, she used the entire balance in her bank account to invest in an investment at 12 percent annually. How much will she have after three more years? Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value

Beverly Hills started a paper route on January 1. Every three months, she deposits $800 in her bank account, which earns 8 percent annually but is compounded quarterly. Four years later, she used the entire balance in her bank account to invest in an investment at 12 percent annually. How much will she have after three more years? Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value

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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Use the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. At the end of every 3 months, Teresa deposits $1500 into an account that pays 6% compounded quarterly for 4 years. A) When this certificate matures, how much will Teresa have accumulated B) How much interest did Teresa earn? Show the use of the appropriate formulas for each part by indicating the evaluation of the formula with the information and provide the answer. Be sure to label the parts using the provided letters and organize your work neatly.
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.
Margaret M. withdrew $630,315 from an account into which she had invested $350,000. If the account paid interest at 4% per year, she kept the money in the account for how many years?
The parents of a child decided to make annual deposits into a saving account, with the firstdeposit being made on the child’s sixth birthday and the last deposit on the 14th birthday. Then,starting on the child’s 16th to the 19th birthday the withdrawals are $3,000, $3,400, $3,800, and$4,200 respectively. If the effective annual interest rate is 6% during this period of time.What are the annual deposits in years 6 through 14? Use a uniform gradient amount (G) inyour solution
Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment of $1,300 and financed the balance for 24 months. If the payments are $175.77 each month, use the APR formula to find the APR. Round to the nearest hundredth of a percent.
Muhammad opens a bank account paying i(4) = 7.250%. 1 year later, he has $5,139.38 in his account. How much money did he deposit in the account at the start? (No dates or daycount convention are given, so use theoretical time; i.e. 1 year = 365 days = 52 weeks = 12 months etc. and count time in periods. e.g. 3 weeks = 3/52 years; 3 months = 0.25 years, etc.) a. $4,825.83 b. $4,783.07 c. $4,775.94 d. $4,804.45 e. $4,818.70
The parents of a child decided to make annual deposits into a saving account, with the first deposit being made on the child’s sixth birthday and the last deposit on the 14th birthday. Then, starting on the child’s 16th to the 19th birthday the withdrawals are $3,000, $3,400, $3,800, and $4,200 respectively. If the effective annual interest rate is 6% during this period of time. What are the annual deposits in years 6 through 14? Use a uniform gradient amount (G) in your solution
On October 1, Lorelai made a single deposit of $12,000 into an investment account which earns interest of 8% compounded annually. Question: Rounded to the nearest whole dollar, what will be the balance in her account at the end of nine (9) years?
Joel invested $1,025 at the end of every month into an investment fund that was earning interest at 4.75% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 5.00% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 13 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 13-year period. $0.00 Round to the nearest cent
Dr. Sisters has been secretly depositing $2,300 in her savings account every December starting in 2001. Her account earns 10 percent compounded annually. How much did she have in December 2015? (Assume a deposit is made in the last year) Make sure to carefully count the years. Use Appendix C. (Round "FV Factor" to 3 decimal places. Round the final answer to the nearest whole dollar.) Future value CI
Mr. Nailor invests $21,000 in a money market account at his local bank. He receives annual interest of 7% for 6 years. How much return will his investment earn during this time period? Use Appendix A. (Round "FV Factor" to 3 decimal places.) $10,521 $29,205 $31,521 $13,986
Chelsea invested the profit of his business in an investment fund that was earning 2.50% compounded monthly. In 4 years, he began withdrawing $3,000 from this fund at the end of every 6 months. If the money in the fund lasted for the next 6 years, how much money did he initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. $ Round to the nearest cent

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