mple and Compound Interest / 9Previous Problem Problem List Next ProblemHW 20 Simple and Compound Interest: Problem 9(6 points)Addie invests 24900 dollars at an interest rate of 9 percent. Determine the value of the investment at the end of 5 years using each of the different compounding methods listed below. Roundeach answer to the nearest cent (two decimal places).(a) Suppose interest is compounded annually. Then, after 5 years, Addie will have a total of $(b) Suppose interest is compounded semiannually. Then, after 5 years, Addie will have a total of $(c) Suppose interest is compounded monthly. Then, after 5 years, Addie will have a total of $(d) Suppose interest is compounded daily (using 365 days in a year). Then, after 5 years, Addie will have a total of $Note: You can earn partial credit on this problem.Preview My Answers Submit AnswersYou have attempted this problem 0 times.You have unlimited attempts remaining.Page generated at 05/04/2024 at 02:45pm EDTWeBWorK 1996-2022 | theme: math4-green | ww_version: 2.17 | pg_version 2.17 | The WeBWorK Project

To solve for compound interest, the formula is:A=P(1+nr)ntwhere: A = Future Value…

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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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Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.
Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions. 19. Create the following table of values for this investment plan. Saving Later Plan 2, tuho table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate varlable. P%3D r = A = M = n = 20. Indicate the best formula to use to compute the amount available after 15 years. 21. Substitute the values into the formula and compute how much money will be available after 15 years.
Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions: 19. Create the following table of values for this investment plan, Saving Later Plan 2, (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. P = A = t 3D M =
Use the formula for computing future value using compound interest to determine the value of an account at the end of 9 years if a principal amount of $18,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded quarterly. Question content area bottom Part 1 The amount after 9 years will be $enter your response here. (Round to the nearest cent as needed.)
d. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000, 10 years from today in an investment paying 10% semiannually? Do not answer in image format
In an attempt to have funds for a down payment in four years, James Dupont plans to save $3,700 a year for the next four years. With an interest rate of 6 percent, what amount will James have available for a down payment after the four years? Use Exhibit 1-B. (Round FVA factor to 3 decimal places and final answer to 2 decimal places.) Future value down payment
Compound Interest Applications Use the TVM Calculator to solve the following compound interest problem. Round your result to two decimal places as needed. Meri invests $12, 000 in an account. The interest is compounded monthly for 18 years. The account balance will be $92, 501.14 at the end of 18 years. What is the annual interest rate? The annual interest rate is %.
use BA 2 PLUS CALCULATOR TO SOLVE PLEASE
How much more would you earn in the first investment than in the second investment? $51,000 invested for 30 years at 10% compounded annually $51,000 invested for 30 years at 5% compounded monthly Click the icon to view some finance formulas. You would earn $ more on the first investment than in the second investment. (Round to the nearest dollar as needed.)
28. Bill can afford a monthly payment of $1,000. He wants to take out a $60,000loan at 8% interest rate. What should be the length of time? Round youranswer to the nearest tenth of a year.A. 6.1 yearsB. 6.2 yearsC. 6.3 yearsD. 6.4 years

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