value of money3Year157000FV as Function of Time and Rate60005000-4000-C.3000-2000-10004Year7000-FV as Function of Time and Rate600050004000D.3000-2000-1000BackAutosaved at 11:36 AMMacBook Air80000000DIIF2F3F4F5F6F7F8$8.Future Value (S)Future Value (S)%24 a. Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.$4b. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent.Interest RateYear0%6%20%$4$$2$$$2$2$$2$$42424$2$24Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 6%, and grey line is for 20%.The correct graph is

Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Interest Rate Year 0% 6% 20% 2$ 2$ 1 %2$ $ 2$ $ $ 24 24 %$4 $ $ hoose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 6%, and grey line is for 20%. he correct graph is

Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Interest Rate Year 0% 6% 20% 2$ 2$ 1 %2$ $ 2$ $ $ 24 24 %$4 $ $ hoose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 6%, and grey line is for 20%. he correct graph is

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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An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $1,821.82 b. $1,913.83 c. $2,297.07 d. $2,479.86 e. $2,735.85
Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? Group of answer choices $52,821.19 $57,900.83 $58,988.19 $62,527.47 $64,131.50
Use the formula for computing future value using compound interest to determine the value of an account at the end of 9 years if a principal amount of $18,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded quarterly. Question content area bottom Part 1 The amount after 9 years will be $enter your response here. (Round to the nearest cent as needed.)
Term Rate (EAR %) 1 year 1.97 2 years 2.46 3 years 2.61 5 years 3.35 7 years 3.74 10 years 4.15 20 years 5.02 a. Calculate the present value of an investment that pays $1,000 in two years and $4,000 in five years for certain. b. Calculate the present value of receiving $200 per year, with certainty, at the end of the next five years. To find the rates for the missing years in the table, linearly interpolate between the years for which you do know the rates. (For example, the rate in year 4 would be the average rate in year 3 and year 5.) c. Calculate the present value of receiving $1,900 per year, with certainty, for the next 20 years. Infer rates for the missing years using linear interpolation. (Hint: Use a spreadsheet.) a. Calculate the present value of an investment that pays $1,000 in two years and $4,000 in five years for certain. The present value of the investment is $ (Round to the nearest cent.)
nt Use the compound interest formulas A = P and A = Pert to solve the problem given. Round answers to the nearest cent. Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) b.What is the accumulated value if the money is compounded quarterly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) c. What is the accumulated value if the money is compounded monthly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) d. What is the accumulated value if the money is compounded continuously? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.)
Consider the following investment. (Round your answers to the nearest cent.) $5,200 at 7 3 4 % compounded quarterly for 8 1 2 years (a) Find the future value of the given amount.$ (b) Interpret the future value of the given amount. After 8 1 2 years, the investment is worth $ .
Give typing answer with explanation and conclusion Compute the future value of $1,000 compounded annually for A-10 years at 5 percent B-10 years at 7 percent C-20 years at 5 percent D why is the interest earned in part c not twice the amount earned in part a?
Tools Introductory ce An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. a. If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent. $ b. If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest dent. D
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: $ j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Year 1 Payment $100 2 $300 $500 3 Round your answers to the nearest cent. PV of investment: $ FV of investment: $ k. Five banks offer nominal rates of 9% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $3,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places. EAR FV after 1 year FV after 2 years Nominal rate $ $ Payment A A % B $ $ % B B C % $ 2. If the TVM is the only consideration, what nominal…
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Payment $100 $300 $500 Round your answers to the nearest cent. Year 1 2 3 PV of investment: $ FV of investment: $ k. Five banks offer nominal rates of 9% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $3,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places. EAR FV after 1 year FV after 2 years Nominal rate $ $ Payment $ A A B % $ $ $ % B B с % 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Round your answers to two decimal places. $ % $ $ с C 3. Suppose you don't have the $3,000 but need it at the end of 1 year. You plan to make a series of…
If you invest $1,127 at the end of each year for 6 years and you earn 14% interest compounded annually, how much will you have accumulated to the nearest dollar? Group of answer choices $10,581 $8,802 $9,860 $9,620 ......
How much more would you earn in the first investment than in the second investment? $51,000 invested for 30 years at 10% compounded annually $51,000 invested for 30 years at 5% compounded monthly Click the icon to view some finance formulas. You would earn $ more on the first investment than in the second investment. (Round to the nearest dollar as needed.)

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