Determine the future value in the account: Lottery winnings of $2,900 are investedin a traditional savings account for 4 years earning 0.75% interest. The savingsaccount has monthly compounding.Round your answer to the nearest cent (hundredth-2 decimal places). DO NOTinclude a $(dollar sign) in your answer.Your Answer:Answer For each APR, determine the APY. Record your answer as a percent rounded to thenearest hundredth (2 decimal places).✓ SavedQuestion 4ListenDetermine the APY: 4.96% APR compounded monthlyRecord your answer as a percent rounded to the nearest hundredth (2 decimalplaces).Your Answer:5.07Answer%units

STEP 1 An annual percentage yield, or APY, measures the amount of money or interest you make on…

Determine the future value in the account: Lottery winnings of $2,900 are invested in a traditional savings account for 4 years earning 0.75% interest. The savings account has monthly compounding. Round your answer to the nearest cent (hundredth-2 decimal places). DO NOT include a $ (dollar sign) in your answer. Your Answer: Answer

Determine the future value in the account: Lottery winnings of $2,900 are invested in a traditional savings account for 4 years earning 0.75% interest. The savings account has monthly compounding. Round your answer to the nearest cent (hundredth-2 decimal places). DO NOT include a $ (dollar sign) in your answer. Your Answer: Answer

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 have saved 18,000$ for a down payment on a house. Your bank requires a minimum down payment of 11%. What is the maximum price you can offer for a home in order to have enough money for the down payment? Round answer to two decimal places.
Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,200 is deposited quarterly for 20 years at 3% per year FV = $ Need Help? Read It Watch It Submit Answer
Pls show full steps and correct pls.
An accounting firm agrees to purchase a computer for $180,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.85% compounded quarterly so that they will have $180,000 in 270 days? (a) State the type. sinking fund amortization present value future value ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $
$3000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in the bank after 5 years if interest is compounded annually. Find the amount in the bank after 5 years if interest is compounded quarterly. Find the amount in the bank after 5 years if interest is compounded monthly. Finally, find the amount in the bank after 5 years if interest is compounded continuously. Question Help: D Video M Message instructor Submit Question
What's the interest rate of a 8-year, annual $3,600 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) Annuity interest rate %
You have just opened a savings account which pays monthly interest at a rate of j12 = 5.5% p.a. You wish to accumulate $20,000 by depositing the same amount into the account at the end of each month, for 2 years, starting in a month's time. a) Determine the required size for the monthly deposit, R. Apply a sanity check. b) Construct a sinking fund table showing 24 deposits with a fixed interest rate of 5.5%. Describe and apply a sanity check to your table. c) Suppose that the interest rate is renewed every three months (quarterly) over the course of the two years as follows: Year 1 Q1 5.5% 02 Q3 2.8% 4.5% 04 01 4.0% 4.2% Year 2 Q2 04 03 3.8% 2.5% 7.5% If you maintain the same monthly deposit of R determined in part a), find the size of your sinking balance after two years. Will you meet your target of $20,000? Describe and apply a sanity check for your answer. d) Construct a sinking fund table showing 24 deposits with the variable interest rate. Describe and apply a sanity check to…
Tom just won a lottery. he plans to create a money market certificate in a bank to prepare a down payment for a house $400,000. The down payment is 20% of the house price, and the current five-year APY is 3.25%. How much should you put in the money market certificate account to accumulate the down payment? Group of answer choices $340,886.41 $93,872.91 $469,334.56 $68,117.28
3. Compound interest Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
Finance Find the savings plan balance after 18 months with an APR of 6% and monthly payments of $800. Assume an ordinary annuity. a. $15,028.63 c. $15,360.28 b. $15,280.36 d. $15,306.82 Please select the best answer from the choices provided A B C D
solve correctly show all steps neatly
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