In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.2% compounded quarterly? a $5,369.45 b $5,169.57 c $5,0128.36 d $5,262.62

In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.2% compounded quarterly? a $5,369.45 b $5,169.57 c $5,0128.36 d $5,262.62

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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12. Keys Company has a target of establishing a fund of $50 000. If $10 000 is deposited at the end of every six months, and the fund earns interest at 4% compounded quarterly, how long will it take to reach the target?
A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6.1% compounded quarterly? (Round your answers to the nearest cent.) $11731.10 x How much interest would they earn over the life of the account? $ 170756.04 X Determine the value of the fund after 2, 4, and 6 years. 2 years $99013.71 X 4 years $210771.88 X 6 years $336914.93 X How much interest was earned during third quarter of the 4th year?
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You invest $1500 today and another $2000 18-months from today in a fund earning j4 = 8% for the first 18 months followed by j₂ = 6% thereafter. How much do you have at the end of 4 years? OA. $4007.79 OB. $4377.73 OC. $4274.59 OD. $4276.84 27
17. Four Seasons Pools needs $115,000 in 3 years. Find the required quarterly payment into a sinking fund if funds are invested in an account earning 8% per year compounded quarterly.
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Ahmad is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded monthly.What would be the balance at the end of 10 years? Select one: a. $163,879 b. $127,200 c. $159,423 d. $158,169

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