Name: Use the annuity formula, A-Px- to solve the following problem. 5) Billy deposits money on a regular basis into an account that earns 2.5 % APR compounded bi-monthly for 11 years. a) How much would he need to deposit bi-monthly if he wanted a future value of $12,200? b) What is the future value of Billy's account if he deposits $60 into the account bi- monthly? c) If this account was compounded semi-annually instead of bi-monthly, which is the better deal?
Name: Use the annuity formula, A-Px- to solve the following problem. 5) Billy deposits money on a regular basis into an account that earns 2.5 % APR compounded bi-monthly for 11 years. a) How much would he need to deposit bi-monthly if he wanted a future value of $12,200? b) What is the future value of Billy's account if he deposits $60 into the account bi- monthly? c) If this account was compounded semi-annually instead of bi-monthly, which is the better deal?
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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Transcribed Image Text:CALCULATOR EXERCISE - FINANCE
Name:
Use the annuity formula, A= Px-
to solve the following problem.
5)
Billy deposits money on a regular basis into an account that earns 2.5% APR
compounded bi-monthly for 11 years.
a) How much would he need to deposit bi-monthly if he wanted a future value of
$12,200?
b) What is the future value of Billy's account if he deposits $60 into the account bi-
monthly?
c) If this account was compounded semi-annually instead of bi-monthly, which is
the better deal?
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