Find the future value for each of the following scenarios, where m is the periodic deposit and r is theinterest rate.compounding timefrequencyin yearsannually6$500 3.1% semiannuallyquarterlymonthlyweeklymr$225 7.9%$500 5.8%$100 5.6%$100 2%$tA8$7 $LA6 $LA12 $futurevalue$$LA$$tA$interestearned

Deposits in finance generally refer to money kept in a bank or any other financial institution where…

Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m $225 7.9% $500 3.1% $500 5.8% $100 5.6% $100 2% compounding frequency annually semiannually quarterly monthly weekly time in years 6 8 7 6 $ $ $ $ 12 $ future value $ $ interest earned

Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m $225 7.9% $500 3.1% $500 5.8% $100 5.6% $100 2% compounding frequency annually semiannually quarterly monthly weekly time in years 6 8 7 6 $ $ $ $ 12 $ future value $ $ interest earned

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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2. Find the present value of $500 due in the future under each of these conditions: a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly compounding, discounted back 5 years c. 12% nominal rate, monthly compounding, discounted back 1 year Hint: identify the interest rate per period and the total number of periods in each scenario first. O
For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Annuity Payment Future Value $ $ $ $ 25.450 1,090,000 928,000 145,000 Years 8 39 25 14 Interest Rate 4% 6 7
Amount of annuity expected $900 Payment Annually Time 4 years Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Opening balance ces Interest Annuity Closing balance Year 1 Year 2 Year 3 Year 4 3,118.59
Find the value of the annuity and the interest. nt P[(1 +n' -1] A = A = P =- nt Periodic Deposit: $2500 at the end of every three months Rate: 4.5% compounded quarterly Time: 9 years O A. $79,006; $10,994 O B. $110,204; $20,204 O C. $332,426; $242,426 O D. $106,505; $16,505
Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) 2$ Amount of Deposit Frequency Rate Time t $250 semiannually 2% 20 yr Need Help? Read It
Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2, & 3 and present value of #4 & 5. Mode of Payment Annually Monthly Quarterly Length of Annuity 3 years 5 years 4 years Length of Annuity 10 years 2 years Principal Interest Future Rate Value 1. P20,000 2% 2. P1,500 7% 3. P4,300 3.50% Principal Interest Mode of Present Rate Payment Value Semi-annually Bimonthly 4. P5,000 3.20% 5. P3,800 6%
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
compounding time frequency in years annually $225,000 3.9% semiannually $275,000 4.9% Future Value $125,000 2% r $200,000 5.7% $250,000 3.7% quarterly monthly weekly 11 $ 10 12 6 9 $ periodic deposit (m) S ज S S interest earned
For each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ $ $ $ 1,950 1,265 11,455 29,900 Years 7 9 16 24 Interest Rate 8% 7 9 11
a. Use the appropriate formula to find the value of the annuity b.how much of the financial goal comes from deposit and how much comes from interest? periodic deposit-$? at the end of the month Rate-5% compounded monthly Time-16 years Financial goal-$140,000
Annuity Years Interest Rate Compounding Future Value of Annuity 3 12.00% Weekly $85,000.00 a. $453.29 b. $468.69 O c. $484.42 O d. $451.51 hp
Calculate the amount of money that must be invested today for an individual to receive the future payments indicated and have the remaining balance at the end of the term. Answer Future Value Interest Rate Payments Timing of Payment Years $- 7% quarterly 2,000 quarterly Beginning 10 $250,000 5.6% quarterly 3,000 annually End 30 $380,000 8% semi-annually 1,500 monthly Beginning 8

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