Leah invested $875 at the end of every month into an investment fund that was earning interest at 3.25% compounded monthly. He stopped making regular deposits at the end of 8 years when the interest rate changed to 3.50% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 8 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 12 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 12-year period. $0.00 Round to the nearest cent

Leah invested $875 at the end of every month into an investment fund that was earning interest at 3.25% compounded monthly. He stopped making regular deposits at the end of 8 years when the interest rate changed to 3.50% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 8 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 12 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 12-year period. $0.00 Round to the nearest cent

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

See similar textbooks

Similar questions

Matthew invested the profit of his business in an investment fund that was earning 3.75% compounded monthly. He began withdrawing $2,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 3 years, how much money did he initially invest in the fund? $ $0.00 Round to the nearest cent
Lucy won a large sum in the lottery. She invested part of her winnings into a fund earning 7.95% compounded monthly. She has arranged a systematic withdrawal plan that provides for 120 monthly payments increasing at a constant rate of 0.9% per payment. The first payment of $850 is due one month after she set up the fund. How much interest is included in the payments?
On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual compound interest, which will be added to the fund balance at the end of each year.Required (round to the nearest dollar):1. What will be the balance in the account at the end of 10 years?2. What is the interest for the 10 years?3. How much interest revenue did the fund earn in the first year? the second year?
For 9 years, Janet saved $500 at the beginning of every month in a fund that earned 4.5% compounded annually. a. What was the balance in the fund at the end of the period? Round to the nearest cent b. What was the amount of interest earned over the period? Round to the nearest cent
On October 1, Lorelai made a single deposit of $12,000 into an investment account which earns interest of 8% compounded annually. Question: Rounded to the nearest whole dollar, what will be the balance in her account at the end of nine (9) years?
Joel invested $1,025 at the end of every month into an investment fund that was earning interest at 4.75% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 5.00% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 13 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 13-year period. $0.00 Round to the nearest cent
Bob has deposited $10,000 at the end of each year into a saving account for the last 12 years. His deposits earned interest at 4% for the first 4 years; at 5% for the next 3 years; and at 6% for the last 5 years. (a) What is the accumulated value in his saving account at the end of year 4? (b) What is the accumulated value in his saving account at the end of year 7? (c) What is the accumulated value in his saving account at the end of year 12? (d) What is the total interest earned for the 12 years?
Monica invested the profit of his business in an investment fund that was earning 2.75% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 5 years, how much money did he initially invest in the fund?
Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.
Bright Inc. will be receiving $5,400 at the end of every month for the next 4 years. If these payments were directly invested into a fund earning 5.50% compounded semi-annually, what would be the future value of the fund at the end of 4 years? Jamie invested $875 at the end of every month in an investment fund that was earning interest at a rate of 4.62% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.63% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 10 years. Round to the nearest cent c. Calculate the total interest earned over the 10-year period.
Tyler invested the profit of her business in an investment fund that was earning 3.75% compounded monthly. She began withdrawing $4,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 5 years, how much money did she initially invest in the fund? $ $0.00 Round to the nearest cent
Calculate the future value of end-of-month payments of $4,000 made at 3.57% compounded quarterly for 4 years. Calculate the amount of money Miguel had to deposit in an investment fund growing at an interest rate of 2.50% compounded annually, to provide her daughter with $13,000 at the end of every year, for 3 years, throughout undergraduate studies Dylan deposits $350 at the end of every month for 2 years and 4 months in a retirement fund at 4.64% compounded quarterly. a. What type of annuity is this? Ordinary simple annuity Ordinary general annuity Simple annuity due General annuity due b. How many payments are there in this annuity?

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS