QUESTION 2 – Time Value of MoneyCalculate the amount of money that will be in each of the following accounts at the end of thegiven deposit period:Compounding Period(Compounded everyMonths)12AnnualDepositAmountInterestPeriodDepositedRM 1,00095,0008,000120,00030,00015,000AccountRate(Years)10Jawa ScottishMawar Berduri10 %1211The Piranha1222Lea Rose832Bunga LaranganLin Suhaimi106.41243

A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Period (Compounded every Months) Annual Deposit Amount Interest Period Deposited RM 1,000 95,000 8,000 120,000 30,000 15,000 Account Rate (Years) Jawa Scottish Mawar Berduri The Piranha 10 % 12 10 12 1 1 12 2 Lea Rose 8. 3 2 Bunga Larangan Lin Suhaimi 10 4 12 4 3

Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Period (Compounded every Months) Annual Deposit Amount Interest Period Deposited RM 1,000 95,000 8,000 120,000 30,000 15,000 Account Rate (Years) Jawa Scottish Mawar Berduri The Piranha 10 % 12 10 12 1 1 12 2 Lea Rose 8. 3 2 Bunga Larangan Lin Suhaimi 10 4 12 4 3

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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Calculate the missing amount for each of the following notes receivable.Face Value Annual Interest Rate Fraction of the Year Interest $11,000 6% 4 months (a) $30,000 5% (b) $1,500 $35,000 (c) 6 months $1,225 (d) 8% 6 months $ 700
An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily. Find the balance after 4 years. A $4,567.98 B $3,664.16 $3,540.27 D $3,001.50 None of these
A person pays an amount at the beginning of each month and then withdraws half of it in the middle of the month, and his balance at the end of the year is 513.6 dinars, knowing that the interest rate approved for withdrawal and deposit is 12% annually, so the amount that is deposited and withdrawn is??A- 30,60 dinarsB - 90, 45 dinarsC- 80, 40 dinarsD- 100, 50 dinars
The rates offered by a bank on deposits between $10,000 and $24,999 are shown in the following table: Term 180 to 269 days 270 to 364 days Rate. 3.15% 3.45% How much more will an investor earn from a $10,000 investment in a 364-day GIC than from two consecutive 182-day GICS? Assume that the interest rate on 180- to 269-day GICS will be the same on the renewal date as it is today. Remember that both the principal and the interest from the first 182-day GIC can be invested in the second 182-day GIC. (Use 365 days a year. Do not round the intermediate calculations. Round your final answer to 2 decimal places.) An investor will earn $ more
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future Value $50,000 7.8% $225,000 6.9% $200,000 6.5% $275,000 3.9% $125,000 5.2% r compounding frequency annually semiannually quarterly monthly weekly time in years 6 15 10 $ 11 $ 13 $ periodic deposit (m) $ interest earned
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 3.5% compounded monthly Click the icon to view some finance formulas. a. The periodic deposit is $. (Do not round until the final answer. Then round up to the nearest dollar as needed.) Formulas b. S of the $220,000 comes from deposits and S comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.) A= In the provided formulas, P is the deposit made at the end of each compounding period, r is the annual interest rate of the annuity in decimal form, n is the number of compounding periods per year, and A is the value of the annuity after t years. P[(1+r)²-1] T Time 10 years A= nt P= Financial Goal $220,000 响 nt [(¹-3) - X SEX
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 3.5% compounded monthly i Click the icon to view some finance formulas. Time 14 years Financial Goal $180,000 a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $180,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
Find the compound interest earned if PhP 41,139 is deposited in a bank at 3.2% compounded monthly for 2 years and 2 months
Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest. a. How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A.How much money should be deposited each year for14 years if you wish to have $26,800 in the account immediately after making the last deposit? Let i=7% per year. B.How much money should be deposited each year for 14 years if you wish to withdraw $2,940 each year for 6 years, beginning at the end of the 15th year? Let i=7% per year. B. The annual deposit amount should equal $ ( Round to nearest cent )
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of each year iClick the icon to view some finance formulas. Rate 3% compounded annually Time 16 years Financial Goal $120,000
3. A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound interest for this account?A) weekly compoundingB) monthly compoundingC) semiannual compoundingD) annual compounding

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