Finding nominal rate of return Suppose the effective annual interest rate on some investment is 8.45% a. What is the stated rate per month? b. Suppose you decide to kick your Starbucks habit to save money. Currently you spend $125.00 per month (about $4 per day) on Starbucks coffee. Without considering the sime value of money and assuming Starbucks prices remain steady, how much will you spend at Starbucks over the next 45 years assuming no change in your monthly spending? c. Now suppose you invest the $125.00 monthly in an account that ears an effective annual return of 6.45%. How much money will you accumulate over 45 years using the funds that you previously spent at Starbucks? Note assume your first monthly deposit occurs one month from now, a. The stated rate per month is % (Round to five decimal places) RITE

Finding nominal rate of return Suppose the effective annual interest rate on some investment is 8.45% a. What is the stated rate per month? b. Suppose you decide to kick your Starbucks habit to save money. Currently you spend $125.00 per month (about $4 per day) on Starbucks coffee. Without considering the sime value of money and assuming Starbucks prices remain steady, how much will you spend at Starbucks over the next 45 years assuming no change in your monthly spending? c. Now suppose you invest the $125.00 monthly in an account that ears an effective annual return of 6.45%. How much money will you accumulate over 45 years using the funds that you previously spent at Starbucks? Note assume your first monthly deposit occurs one month from now, a. The stated rate per month is % (Round to five decimal places) RITE

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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Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions: 19. Create the following table of values for this investment plan, Saving Later Plan 2, (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. P = A = t 3D M =
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
Interest Rate? Problem 2 In 4 years, you plan to buy a new car and will need a down payment. How much would you need to invest today in order to have $8,000 in 4 years? Assume interest rates are 4%. Which table will you use for the above calculation? Number of periods? Factor? hapter What is the amount of investment? Problom 3 value of money and Бопа X A P Q S Y
If you stop drinking Starbucks every day, which cost $3.16 (including tax). If you save that money with interest rate of 10%, how much will it be after 20 years? Use 365 for the number of days a year. Annualize the savings: annual savings is 3.16*365
Your client has $3,200 in a stock account right now. Suppose they let it grow for 40 years, not adding anything to it. Interest compounds monthly with an annual rate of 6.2%. If the rate of inflation averages 2.7% over that time, what is the value of that investment account in today's real dollars? Answer = $ (Round to the nearest cent/penny.) Question Help: M Message instructor Add Work
Calculating Loan Payments You want to buy a new sports coupe for $69,300, and the finance office at the dealership has quoted you a loan with an APR of 5.6 percent for 48 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?
please answer fast i give upvote
Using the BA II Plus how do I find the solution to The Humpty Dumpty Food Store will be setting aside 35,000 each quarter starting next quarter, for the next four years. How much money will the firm have in four years if it can earn 6.25 % on its savings?
A guy is wondering which account he should invest in Account A- earns an APR of 4% of compunded monthly Account B- intrest is compunded daily, and the effective annual rate is 4%(APR is unknown) In Account B the 4% is an effective annual rate does this mean Account B is better if money is left in there for one year? If the money is left in there for 1 or more year does it make a diffrence?
Don't table use please give me typing answer
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63
7. A car buyer figures they can afford 60 equal monthly payments of $424 per month, starting next month. Given that constraint, what is the most they can borrow for the car if the rate is 6.24% APR compounded monthly? Enter answer rounded to the nearest dollar. 8. An investment is being evaluated that is expected to provide monthly cash flows starting 1 month from today, and lasting forever. The first cash flow is expected to be $1,166 and the remaining are expected to grow at a rate of 2.4% APR compounded monthly. What is the present value of this cash flow stream if discounted at a rate of 8.88% compounded monthly? Enter answer rounded to the nearest dollar.

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