My bank is offering a savings plan as follows: The initial yield is 3.25% APY. If I maintain my account for at least 6 months, the yield increases to a 3.75% APY. I plan to start my account with a $2,500 initial deposit and then make regular deposits of $560 per quarter. What is my account balance in 11 months? $4,285 $3,635 $4,206 $4,215

My bank is offering a savings plan as follows: The initial yield is 3.25% APY. If I maintain my account for at least 6 months, the yield increases to a 3.75% APY. I plan to start my account with a $2,500 initial deposit and then make regular deposits of $560 per quarter. What is my account balance in 11 months? $4,285 $3,635 $4,206 $4,215

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

You want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate for 240 months (20 years). What will your monthly payments be? My monthly payment will be $_________ .
You decided to deposit $300 each month starting next month for the next 10 years. If your account will grow to be $100,000 by year 10, what rate of return per month are you earning on your deposits?
You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?
You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2 years, the interest rate is increased to 7.52% compounded quarterly. What will be the value of the account after a total of 4 years? i Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar as needed.)
Suppose you have decided to put $500 at the beginning of every month in a savings account that credits interest at the annual rate of 5%, but compounds it monthly. Find the amount in this account after 20 years.
You plan to invest an amount of money in a five-year certificate of deposit (CD) at your bank. The stated interest rate is 12%, compounded Quarterly. How much must you invest if you want the balance in the CD account to be $7,500 in five years?
Your first deposit of $5,000 will be made today. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10% a year. (That is, you plan to deposit $5,500 at t = 1, and $6,050 at t = 2, etc.) Your deposits earn a 14% return. What is the present value today of all the deposits you have made?
You purchase a condominium for $125,000. The bank requires a 20% down payment. You borrow the remainder as a 30-year, 6.6% mortgage with monthly payments. What portion of the payments during. the first 33 months goes toward principal?
Suppose you borrowed $1,000 from the bank and the rate of interest was 5%. What would the simple interest be if the amount is borrowed for 1 year? Suppose you deposit $4,000 at a bank at a simple interest rate of 7.5% per year. How much money will you have in the bank after 10 years? Question 2: The following questions are related to Compounded Interest: You deposit $2000 in an account earning 3% interest compounded monthly. How much will you have in the account in 20 years? How much interest will you earn? How much would you need to deposit in an account now in order to have $6,000 in the account in 8 years? Assume the account earns 6% interest compounded monthly.
Your bank offers a savings account that pays 2.5% interest, compounded annually. If you invest $1,000 in the account, then how much will it be worth at the end of 25 years?
If you borrow $30,000 from a bank for 7 years at an interest rate of 8.5%, how much will you owe in balloon payment at the end of the loan's term? This is a balloon loan with all payment due at the end. Round to the nearest dollar. Type your numeric answer and submit
if you have $100 in a savings account and the interest rate is 10% per year and you never withdraw or deposit money, how much will you have in the account after: one year, two years

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