Please help with the problem 5-49. make into the guaranteed fund in the preceding question. He decides to investthe $140,000 today and $500 at the end of each month for the next 10 years intoa fund consisting of 50 percent stock and 50 percent bonds, and hope for thebest. What APR would the fund have to earn for Prof. ME to reach his $420,000goal?5-49. (Calculating the effective annual rate) You've just received an offer from a bankfor a credit card with a quoted rate, or APR, of 18 percent compounded monthly.What's the EAR, or effective annual rate, on the credit card?

Effective Annual Rate = (1+APR/No. of Periods)^No. of Periods - 1 Effective Annual Rate…

Answered: make into the guaranteed fund in the…

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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Jimmy deposits $3,600 now, $ 2,500 3 years from now, and $ 5,800 6 years from now. Interest is 6 % for the first 3 years and 7 % for the last 3 years. (Round your answers to the nearest whole dollar. The tolerance is +/- 4.00) a. How much money will be in the fund at the end of 6 years? $ b. What is the present worth of the fund? $ c. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1-6)? 69
Suppose that you have an opportunity to invest in a fund that pays 12% interest compoundedannually. Today, you invest P10,000 into this fund. Three years later, you borrow P5,000 from alocal bank at 10% effective annual interest and invest it in the fund. Two years later, you withdrawenough money from the fund to repay the bank loan and all interest due on it. Three years laterfrom this withdrawal you start taking P2,000 per year for 5 years out of the fund. After 5 years, youhave withdrawn your original P10,000. The amount remaining in the fund is earned interest. Howmuch remains?
Today is 1/7/2023, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=4.81% from 1/7/2023 to 30/9/2023 and j₂-3.91% from 1/10/2023 to 31/12/2023. What will be the balance amount of this account on 31/12/2023? Round your answer to three decimal places. a. 3036.682 b. 3035.842 O c. 3037.723 O d. 3036.363
David Quincy wants to withdraw $30,800 each year for 10 years from a fund that earns 10% interest. Click here to view factor tables. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end First withdrawal immediately
Please answer part A-D and give a short explanation of how you arrived at you answer. A) You want to go to Europe 5 years from now, and you can save $3,300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 9.1 percent per year. Under these conditions how much would you have just after you make the 5th deposit 5 years from now? B) Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $53,750 at the end of each year, starting at the end of this year. For how many years can he make the $53,750 withdrawals and have nothing left at the end? Round to the nearest integer. C) What’s the future value of $1,200 after 5 years if the appropriate interest rate is 10.8 percent, compounded monthly? Round to the nearest integer. D) Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 31.2 percent with…
Serena Monroe wants to create a fund today that will enable her to withdraw $31,300 per year for 8 years, with the first withdrawal to take place 5 years from today. Click here to view factor tables. If the fund earns 11% interest, how much must Serena invest today? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Investment amount $
Now consider your financial objective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of 10% per year. To achieve your goal, how much do you need to save at the end of each year over the 30-year period? a. 4,039.26 b. 3,039.62 c. 2,985.54 d. 10,988.32 What is the FV of $100 deposited today into an account with an APR 12.6%, compounded semiannually for 10 years? a. 1478.96 b. 3460.06 c. 327.63 d. 339.36 A car dealer offers payment of $525.32 per months for 60 months on a $30,000 car after making a $5000 down payment. What's the loan's APR? a. 10.4798% b. 9.5224% c. 1.9609% d. 0.7935%
Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j 2 = 3.2% from 1/7/2021 to 30/9/2021 and j2 = 4.83% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places.Question 11 Answer a. 3037.527 b. 3038.404 с. 3038.048 d. 3039.408
You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent semiannually: or you can wait, enjoy some of it, and invest OMR 11,000 in your brother's business in two years. Your brother is promising you a return of at least 10 percent on your investment. Whichever alternative you choose; you will need to cash in at the end of 10 years. Assume your brother is trustworthy and that both investments carry the same risk. Which one will you choose?
Godo
Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=3.59% from 1/7/2021 to 30/9/2021 and j2=3.93% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places. Question Answer a. 3034.806 b. 3032.925 c. 3033.446 d. 3033.714
Serena Medavoy will invest $7,680 a year for 20 years in a fund that will earn 4% annual interest. Click here to view factor tables. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) First payment today First payment at year-end $ +A $

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