Calculating deposit needed You put $7,000 in an account earning 7%. After 2 years, you make another deposit into the same account. Five years later (that is, 7 years after your original $7,000 deposit), the account balance is $24,000. What was the amount of the deposit at the end of year 2? The amount of the deposit at the end of year 2 is $ (Round to the nearest cent.)

Calculating deposit needed You put $7,000 in an account earning 7%. After 2 years, you make another deposit into the same account. Five years later (that is, 7 years after your original $7,000 deposit), the account balance is $24,000. What was the amount of the deposit at the end of year 2? The amount of the deposit at the end of year 2 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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You put $10,000 in an account earning 5%. After 4 years, you make another deposit into the same account. Four years later (that is, 8 years after your original $10,000 deposit), the account balance is $22,000. What was the amount of the deposit at the end of year 4?
You deposit $2,400 each year in an account bearing 4.2% annual interest, with the first deposit made upon opening the account. What will your balance be after 11 total deposits, that is, after 10 years? (Round your answer to the nearest cent; no labels please!) $4
Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year, compounded quarterly, how much will be in the account at the end of 4 years.A. $812 84B. $750.00C. $1,029.59D. $927.52E. $1.020.37
You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $600,000 Interest rate: 4.85% Frequency:monthly Time: 17 years
You put $190 in the bank for 5 years at 15%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Round your answers to 2 decimal places. Year Money in the bank 1 $fill in the blank 1 2 $fill in the blank 2 3 $fill in the blank 3 4 $fill in the blank 4 5 $fill in the blank 5 B. Use the future value of $1 table and verify that your answer is correct. Round your future value factor to three decimal places and final answer to 2 decimal places. $fill in the blank 6
You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
Assume Bill Jones invested $ 2,160.57 into an account exactly one year ago. The account has an interest rate of 5.9 % p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)? (Round your answer to the nearest cent and record your answer without a dollar sign and without commas. For example, record $1,356.8382 as 1356.84).
Suppose you invest $850 in an account paying 5% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 29 years? How much of this balance corresponds to "interest on interest"? a. What is the balance in the account after 2 years? The balance in the account after 2 years is $ (Round to the nearest cent.)
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 )
3. You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 ? ? 2 ? ? ? 3 ? ? ? 4 ? ? ? 5 ? ? ? PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct. Present Value (PV) PV FV Factor Future Value (FV) ? ? ? PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).

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