Jackie deposited $9,000 in an interest-bearing savings account and after 10 years, Jackie closesout the account, which is worth at that time $18,000. Assuming Jackie made no other depositsinto the savings account during this 10-year period other than the initial amount of $9,000, whatannual rate of interest did she earn over the 10 years?Note: Carry your final answer out two decimal places.C 6.45%C 7.18%9.10%10.0%

The annual rate of return refers to the percentage of earnings or returns on the initial investment…

Answered: Jackie deposited $9,000 in an…

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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9. Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for 30 years at 6%. a. What is Jason’s monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment $ b. What is the total interest cost of the loan? (Use the amortization worksheet on the financial calculator.) Total interest cost $
3. Brittney won $765,000 in a lawsuit against MIT over theft of intellectual property. She and Santana decide to invest the money in a college fund for their 5-year-old daughter. How much will they have when their daughter is 18? Calculate the balance for each of the following account options: a. 4.36% APR interest compounded continuously b. 4.49% APR interest compounded quarterly c. 4.6% APR interest compounded yearly
Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. $95,037.72$103,940.74 $112,256.00$113,556.00
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Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of theloan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annuallyhasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of thepayment was exactly $1,000.a. What is Marie’s monthly payment? b. How much did Boris originally borrow
Suppose 27 years ago your father deposited $ 27992 in an account earning 9%. Every year you withdrew $1369 (you withdrew 27 times in total, your last withdrawal is today). How much is in the account after your last withdrawal?
James and Mary Garfield invested $5,000 in a savings account paying 4% annual interest when their daughter, Patricia, was born. They also deposited $1,000 on each of her birthdays until she was 14 (including her 14th birthday). Click here to view the factor table. How much was in the savings account on her 14th birthday (after the last deposit)? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Amount on 14th birthday $
Dan is 65 and is retiring this year. He currently has $1 million in his account. Assume his life expectancy is 95 and the current interest rate is 9%. Dan wants to use up all the money before he dies. How much should he withdraw at the beginning of each month to cover his daily living expenses? A. $89,299.40 B. $7,986.33 C. $7,441.62 D. $8,046.23
Upon graduating from college 40 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a weekly basis in the amount of $25.Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 9 percent compounded weekly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 10 years ago Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund?
Question 2 Pam Beesly is 39 years old today and she wishes to accumulate $513,000 by her 63rd birthday so she can retire. She wishes to accumulate this amount by making equal deposits on her 39th through her 62th birthdays. What annual deposit must Pam make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Pam must make an annual deposit of $?
Sam refuses to retire until his retirement account has a balance of at least $ 369,214 . Sam refuses to make any more deposits in the account. The account currently has a balance of$ 117,923 and earns 6% per year, compounded semi-annually. How long does Sam have before he will retire? You are computing number of years. Round your answer to one decimal place. For example, record 14.294 years as 14.3.
On the day you were born, your parents opened than the amount deposited in the previous year Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following? OA $80,839 OB $27,958 OC. $99,002 a college savings account with an initial deposit of $2.200 On every one of your birthdays since, your parents have made an additional deposit that is 3% larger The account eams 6.7% interest annually OD $30,000 OE $29,050 The deposit made on your 18th birthday will be the final deposit made into the account You plan on using the balance in the account to fund your college education You will be attending a 4-year institution and you will assume that tuition costs will remain constant over the next four years. If the first annual tution payment wit be made on your 19th birthday, what is the maximum annual tabon expense that the balance in your account can sustain if you plan on attending college for four…

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