Emma is saving for a new car. She deposits $2200 into an annuity account at the end of every year, for four years. The account pays 3% per annum interest, compounding annuall The table shows future values of an annuity of $1. Future values of an annuity of $1 Years Interest rate per annum 1% 1.5% 2% 2.5% 3% 3.5% 4% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 2.0400 3.0301 3.0452 3.0604 3.0756 3.0909 3.1062 3.1216 4 4.0604 4.0909 4.1216 4.1525 4.1836 4.2149 4.2465 5 5.1010 5.1523 5.2040 5.2563 5.3091 5.3625 5.5256

Emma is saving for a new car. She deposits $2200 into an annuity account at the end of every year, for four years. The account pays 3% per annum interest, compounding annuall The table shows future values of an annuity of $1. Future values of an annuity of $1 Years Interest rate per annum 1% 1.5% 2% 2.5% 3% 3.5% 4% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 2.0250 2.0300 2.0350 2.0400 3.0301 3.0452 3.0604 3.0756 3.0909 3.1062 3.1216 4 4.0604 4.0909 4.1216 4.1525 4.1836 4.2149 4.2465 5 5.1010 5.1523 5.2040 5.2563 5.3091 5.3625 5.5256

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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Similar questions

To help purchase his new minivan, Eric is taking out a $17,000 amortized loan for 6 years at 5.9% annual interest. His monthly payment for this loan is $280.94. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 12 Payment number 1 2 1 40 41 Interest payment $0 $0 $41.98 Principal payment $0 $0 $238.96 $0 New loan balance $0 $16,604.31 $8299.52 $
Q1) Molly receives $3,700 from an investment at the beginning of every month for 2 years at 3.62% compounded semi-annually. What type of annuity is this? Q2) Jeffrey deposits $450 at the end of every quarter for 4 years and 6 months in a retirement fund at 5.30% compounded semi-annually. What type of annuity is this?Q3) How much should Shawn have in a savings account that is earning 3.75% compounded quarterly, if he plans to withdraw $2,250 from this account at the end of every quarter for 7 years?
Ques 15 and 16
Mary deposits her P500,000 in a saving bank that gives nominal interest if P9.4% compounded semi-annually. How much money will Mary has after 7 ½ years?
Mike buys an annuity-immediate with varying annual payments for 30 years. During the first 5 years, the payment is constant and equal to 800. Beginning in year 6, the payments start to increase. For year 6 and all future years, the current year's payment is 50 larger than the previous year's payment. At an annual effective interest rate of 6%, find the present value of the annuity.
Li Jun purchased an annuity that had an interest rate of 3.75% compounded semi- annually. It provided her with payments of $2,000 at the end of every month for 3 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it? $0.00 Round to the nearest cent
You would like to have $6,000.00 in 11 years for a special vacation following graduation by making deposits at the end of each quarter in an annuity that pays 5.7% compounded quarterly. How much money should you deposit at the end of every quarter? calculations. Round to the nearest penny and use rounded values for all future How much of the $6,000.00 comes from deposits and how much comes from interest? of the $6,000.00 comes from your deposits and $ comes from interest.
Lauren deposited $10,000 today. He plans to withdraw $1100 every year. For how long can she withdraw from the account starting 1 year from now if interest is 89% compounded annually? State your answor in years and months (trom 0 to 11 months) This is an example of OA Compound Interest Problem (PMT-0) OB. Payout Annuity Problem (FV0) OC. Savings Annuity Problem (PV= 0) The TVM variable being solved is OA PMY OB. n Use your TVM solver to answer the following questions (a) It will take years to depelete the account Round UP to the nearest whole period (b) She can make withdrawals for year(s) and month(s) Answers should be whole numbers with months is between 0 and 11 CHES O.C. FV OD. PV
2. Rita has received a gift of $15 000 from her grandma and she plans to put this in a 6-year term deposit on which she will receive an S% interest compounded monthly. What amount will she have after 6 years if she makes this investment?
9
Ellen Quarles recently opened a savings account. If Ellen deposits $1000 and the amount compounded annually at 8%, how much will Ellen have at the end of five years (round your answer to the nearest dollar)? Compound Value Interest Factors Period 2% 4% 6% 2 1.8200 1.0400 10600 10800 1.0404 1.0016 11236 16640 3 10612 1.1249 1.1910 12597 4 1.0824 1.1699 12625 5 1.1041 12167 1.1262 13653 7 1.1487 13159 13382 14693 14185 15869 15036 1.7138 1.1717 13686 15938 18509 1 9 · 10 11 12 13 14 15 16 17 18 19 20 12% 15% 20% 10% 1.1000 1.1200 1.1500 1.2000 12100 12544 13225 14400 13310 1.4049 15209 1.7280 1.3605 14641 15735 16105 1.7623 20114 24683 1.7490 20736 17716 1.9738 23131 2.9860 19487 22107 26600 3.5832 1.1951 14233 1.6895 1.9990 2.3579 2.7731 35179 5.1598 2.1436 24760 3.0590 42998 1.2190 14902 1.7908 21589 25937 3.1058 12434 15395 13983 23316 40456 6.1917 12682 16010 20122 25182 3.1384 3.8960 53502 2.8531 34785 46524 74301 12936 1.4451 21329 27196 6.9161 13195 12317 22609 29372 34523 43635…
Every quarter, a couple deposits 1,050 in an account that pays 4 1/2% compounded quarterly. If their first deposit was made on September 1, 1988, how much will be in their account just after their deposit is made on March 1, 1998. (Ordinary Annuity-Amount and Present Value)

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