Saved.For an investment to triple in value during a 25-year period.a. What annually compounded rate of return must it eam? (Do not round Intermedlate calculations and round your final answer to 2decimal places.)Annually compounded rate of returnb. What quarterly compounded rate of return must it earn? (Do not round Intermedlate calculatlons and round your final onswer to 2declmal places.)Quarterly compounded rate of returnc. What monthly compounded rate of return must it earn? (Do not round Intermedlate calculatlons and round your final answer to 2decimal places.)Monthly compounded rate of returnNext >< Prev15 of 23connectPIT5N.

Future value of money grow with increase in compounding due to increased effective interest rate.

de during a 25-year period, at annually compounded rate of return must it eam? (Do not round Intermediate calculations and round your finel answer to 2 al places.) lly compounded rate of return at quarterly compounded rate of return must it earn? (Do not round Intermedlate calculations and round your final answer to 2 al places.) erly compounded rate of return at monthly compounded rate of return must it earn? (Do not round Intermedlate calculations and round your final answer to 2 al places.) ly compounded rate of return 1%

de during a 25-year period, at annually compounded rate of return must it eam? (Do not round Intermediate calculations and round your finel answer to 2 al places.) lly compounded rate of return at quarterly compounded rate of return must it earn? (Do not round Intermedlate calculations and round your final answer to 2 al places.) erly compounded rate of return at monthly compounded rate of return must it earn? (Do not round Intermedlate calculations and round your final answer to 2 al places.) ly compounded rate of return 1%

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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Which comes closest to the future value of $875 to be received at the end of 7 years, if the amount earns an annual interest rate of 4% and is compounded 4 times per year? O $1156.13 O $664.93 O $662.23 O $910.00 O $1151.44 SUBMIT ANSWER
Complete the following using compound future value. Do not round intermediate calculations. Round final answers to the nearest cent. Time principal rate compounded Amount Interest 4 years $15,700 6% quarterly ? ? *Amount and interest need to be solved.
Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually. How much is in the account at the end of each compounding period? (Calculate the interest and compound it each period rather than using the compound interest formula. Round your answers to the nearest cent.) first period $ second period $ How much total interest does it earn? (Round your answer to the nearest cent.)$ What is the APY? %
Present value = $100; Interest rate = 5%; Number of years 11 (assume annual compounding). What is the future value? Group of answer choices 171.03 155.00 55.00 223.13 Answer with Explanation and with reason of answer is correct or incorrect
What is the future value of $3,500 in 19 years at an APR of 8.8 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Please show work. Thank you
Manually calculate the compound amount and compound interest for the following investment. Round your answers to the nearest cent. Do not round intermediate calculations. Principal TimePeriod (years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $7,000 5 6 annually $ $
Find the missing values assuming continuously compounded interest. (Round your answers to two decimal places.) InitialInvestment Annual% Rate Time toDouble Amount After10 Years $ % 15 yr $1600
You have a choice of investing in a financial instrument that either compounds interest on an annual basis or on a quarterly basis. Which would you choose? Group of answer choices I would prefer simple interest Quarterly compounding I would be indifferent; I would earn the same with either compounding. Annual compounding
Manually calculate the compound amount and compound interest (in $) for the investment. Principal TimePeriod (years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $1,000 2 10 annually $ $
What is the future value of $5,500 in 17 years at an APR of 8.4 percent compounded semiannualy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value
Find the future values of the following ordinary annuities: a. FV of $600 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $300 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 819000.0 The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest. V

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