Jessica invests $4500 today and another $1,000 ayear from now until 5 years. She also increases her1,000 investment by 200 from year 2 each untilyear 5. She stops investing from year 6 until year 10. Ifshe earns a rate of return of 4% on her investments,determine future worth of her investments at the endof year 10.year

Investment in year 0 = 4500 for 10 years Investment in year 1 = 1000 for 9 years Investment in year…

Jessica invests $4500 today and another $1,000 a year from now until 5 years. She also increases her 1,000 investment by 200 from year 2 each year until year 5. She stops investing from year 6 until year 10. If she earns a rate of return of 4% on her investments, determine future worth of her investments at the end of year 10.

Jessica invests $4500 today and another $1,000 a year from now until 5 years. She also increases her 1,000 investment by 200 from year 2 each year until year 5. She stops investing from year 6 until year 10. If she earns a rate of return of 4% on her investments, determine future worth of her investments at the end of year 10.

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

Tara invests $3000 today and another $1,500 a year from now until 5 years. She stops investing from year 6 until year 10. If she earns a rate of return of 5% on her investments, determine future worth of her investments at the end of year 10.
Tara invests $3000 today and another $1,500 a year from now until 5 years. She also increases her 1,500 investment by 150 from year 2 each year until year 5. She stops investing from year 6 until year 10. If she earns a rate of return of 5% on her investments, determine future worth of her investments at the end of year 10.
At the end of year 5 Joe starts to withdraw $14500 from his savings account. If he takes out the same amount each year and the interest rate is 14%, what was Joe's initial investment assuming the account will be depleted at the end of year 25
Maria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year deposits over the next 5 years. If Maria can earn 7% on her investments, how much must she deposit at the end of each year to meet this goal?
Annalise will deposit into her investment account $4,500, $1,000, and $5,500 at the end of Years 1, 2, and 3, respectively. What will her account be worth at the end of the Year 3 if she earns an annual rate of 6.15 percent? O $11,632.02 O $10,381.25 O $9,725.12 O $11,526.50 None of these answers are correct
Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at 6.3% for 5 years. If she needs $23,000 12 years from today, then what expected return must she obtain when she reinvests the proceeds from her two previous investments. Assume that she reinvests as soon as the money is received.
Belinda invested a sum of money for her two years old child education in the amount of fifty thousand pesos at the rate of 10 ½% compounded quarterly. After a year, she added another fifty thousand on her investment. She withdraw the total amount of her investment when her child entered college at the age of 18. What is the maturity value of her investment?
Janet Woo decided to retire to Florida in 6 years. What amount should Janet invest today so she can withdraw$50,000 at the end of each year for 20 years after she retires? Assume Janet can invest money at 6% compoundedannually.
Belinda invested a sum of money for her two-year-old child education in the amount of fifty thousand pesos at the rate of 10 ½% compounded quarterly. After a year, she added another fifty thousand on her investment. She withdraw the total amount of her investment when her child enter college at the age of 18. What is the maturity value of her investment?
Jillian invested $2,000 six years ago at 4.5 percent interest. She spends all of her interestearnings immediately, so she only receives interest on her initial $2,000 investment. How muchinterest is she earning each year?
Scarlett is considering investing $10,000 she will receive from a trust fund when she turns 25 years old. If she invested the money for three years at 4% per year, compounded annually, what would her investment be worth at the end of three years? Note: Assume this problem uses Compounding Interest (compounded annually), NOT Simple Interest. $10,400 $11,200 $11,249 O $10,816
Jharold need P4,000 per year for four years to go to college. His father invested P5,000 in 7% account for his education when he was born. If he withdraw P4,000 at the end of year 17th, 18th, 19th and 20th birthday, how much money will be left in the account at the end of the 21st year?

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