How much should you deposit at the end of each month into an investment account that pays comes from earnings? i Click the icon to view some finance formulas. In order to have $5 million in 38 years, you should deposit $ each month. (Round up to the nearest dollar.) $of the $5 million comes from interest. (Use the answer from the previous step. Round to the nearest dollar as needed.) ***

How much should you deposit at the end of each month into an investment account that pays comes from earnings? i Click the icon to view some finance formulas. In order to have $5 million in 38 years, you should deposit $ each month. (Round up to the nearest dollar.) $of the $5 million comes from interest. (Use the answer from the previous step. Round to the nearest dollar as needed.) ***

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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Similar questions

Po.10.
1. If you make yearly deposits of $1200 in a bank account, how much money will you have in your account after 20 years? interest rate is 6%. Please work out and do not use excel. Include cashflow diagram if possible.
You plan to spend $400 to buy a new IPAD at the beginning of year3 and $1,000 to buy a new phone at the End of year 6. By using excel, please calculate how much you need to save in each year? Suppose you deposit in the beginning of each year. Suppose your last deposit is at the beginning of year 6. Interest rate is 8%. Answers should be rounded to the 2nd decimal place.
Question 1. Suppose that you invest P dollars at the beginning of every week. However, your crazy banker decides to compound interest at a rate r at the end of Week 5, Week 9, Week 12, Week 14, and Week 15. What is the value of the account at the end of Week 15? At the end of the Week 15, you need to spend $15, 000 on a bandersnatch. How much money must you invest weekly to ensure you have exactly $15, 000 after Week 15 if the weekly interest rate is 10%?
You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment? 4.067% 4.188% 3.926% 4.152% Suppose you decide to deposit $25,000 in a savings account that pays a nominal rate of 4%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after six months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $25,505.01 $26,015.11 $26,397.69 $24,739.86
Suppose you want to have $400,000 for retirement in 35 years. Your account earns 5% interest. How much would you need to deposit in the account each month? Submit Question .com/course/showcalendar.php?cid=179278 Search
Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will finally get to buy it. If you have been depositing $193 per month in a bank account which gives 5% APR. How much do you have now in your bank account? (Round the answer two decimal point)
You're trying to save to buy a new $141,720 Mercedes. You have $74,461 today that can be invested at your bank. The bank pays 5.74 percent annual interest on its accounts. How long will it be (in years) before you have enough to buy the car? Answer to two decimals.
Future Value ComputationAt the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3 years if you earn 8% compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar.
Suppose you deposit $9,000 into your bank account at the beginning of each of the next 5 years (i.e., the first deposit is today). If the interest rate is 9%, how much would you have accumulated at the end of 5 years?Enter your response below (rounded to 2 decimal places).
You would like to save a million dollars by depositing $25,000 at the end of year into an account that pays 8% interest annually. How long will it take you to achieve your savings goal? Group of answer choices 18.65 years 12.35 years 20.0 years 40.00 years 37.04 years
Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value

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