Future amount Length Rate Rate desired of time compounded used 7 years 20 years 2% semiannually 4% annually 1. $ 9,000 2. $20,000 3. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How mucia must Bill put in the bank today (8% quarterly) to reach his goal? 4. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be $28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in the bank today?
Future amount Length Rate Rate desired of time compounded used 7 years 20 years 2% semiannually 4% annually 1. $ 9,000 2. $20,000 3. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How mucia must Bill put in the bank today (8% quarterly) to reach his goal? 4. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be $28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in the bank today?
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
Related questions
Question
![Future
amount
Length
Rate
Rate
desired
of time
compounded
used
7 years
20 years
2% semiannually
4% annually
1. $ 9,000
2. $20,000
3. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How mucia must Bill
put in the bank today (8% quarterly) to reach his goal?
4. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be
$28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in
the bank today?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc26dbd65-2024-4569-ae02-96a244cf983d%2Fe08e15d1-3749-475f-9d60-b7be7ad402e5%2F3ub5umr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Future
amount
Length
Rate
Rate
desired
of time
compounded
used
7 years
20 years
2% semiannually
4% annually
1. $ 9,000
2. $20,000
3. Bill Blum needs $40,000 6 years from today to attend V.P.R. Tech. How mucia must Bill
put in the bank today (8% quarterly) to reach his goal?
4. Bob Fry wants to buy his grandson a Ford Taurus in 4 years. The cost of a car will be
$28,000. Assuming a bank rate of 4% compounded quarterly, how much must Bob put in
the bank today?
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