Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $9,000 for his CD investment. If the bank is offering a 3.5% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. three-year investment period? b. five-year investment period? c. eight-year investment period? d. fifteen-year investment period? a. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 3-year investment period? (Round to the nearest cent.) b. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 5-year investment period? (Round to the nearest cent.) c. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 8-year investment period? (Round to the nearest cent.) d. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 15-year investment period? (Round to the nearest cent.)
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $9,000 for his CD investment. If the bank is offering a 3.5% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. three-year investment period? b. five-year investment period? c. eight-year investment period? d. fifteen-year investment period? a. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 3-year investment period? (Round to the nearest cent.) b. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 5-year investment period? (Round to the nearest cent.) c. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 8-year investment period? (Round to the nearest cent.) d. How much will the $9,000 CD investment at 3.5% interest rate be worth at maturity if Jonathan picks a 15-year investment period? (Round to the nearest cent.)
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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Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has
$9,000 for his CD investment. If the bank is offering a 3.5%
interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks aa.
three-year
investment period?b.
five-year
investment period?c.
eight-year
investment period?d.
fifteen-year
investment period?a. How much will the
$9,000
CD investment at
3.5%
interest rate be worth at maturity if Jonathan picks a
3-year
investment period?(Round to the nearest cent.)
b. How much will the
$9,000
CD investment at
3.5%
interest rate be worth at maturity if Jonathan picks a
5-year
investment period? (Round to the nearest cent.)
c. How much will the
$9,000
CD investment at
3.5%
interest rate be worth at maturity if Jonathan picks a
8-year
investment period? (Round to the nearest cent.)
d. How much will the
$9,000
CD investment at
3.5%
interest rate be worth at maturity if Jonathan picks a
15-year
investment period? (Round to the nearest cent.)
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