Jones can deposit $5,700 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually. Required: a. What will the value of the investment be after 12 years? b. If the deposits were made at the beginning of each year, what would the value of the investment be after 12 years? Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Jones can deposit $5,700 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually. Required: a. What will the value of the investment be after 12 years? b. If the deposits were made at the beginning of each year, what would the value of the investment be after 12 years? Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
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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Jones can deposit $5,700 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually.
Required:
a. What will the value of the investment be after 12 years?
b. If the deposits were made at the beginning of each year, what would the value of the investment be after 12 years?
Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
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