Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter for 15 years. Each quarterly deposit in the first year is 200. Each quarterly deposit in the second year is 200 + P, and the quarterly deposits in each year continue to increase by P for the 15 year period. At the end of 15 years, Natalia will purchase a 20 year annuity that makes continuous payments at a rate of 1,200 per year for the first 10 years and 1,900 per year for the second 10 years. The interest rate on the continuous annuity is 4% annual effective. Calculate P. A B C D E 1.97 2.15 2.58 2.76 2.95

Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter for 15 years. Each quarterly deposit in the first year is 200. Each quarterly deposit in the second year is 200 + P, and the quarterly deposits in each year continue to increase by P for the 15 year period. At the end of 15 years, Natalia will purchase a 20 year annuity that makes continuous payments at a rate of 1,200 per year for the first 10 years and 1,900 per year for the second 10 years. The interest rate on the continuous annuity is 4% annual effective. Calculate P. A B C D E 1.97 2.15 2.58 2.76 2.95

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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Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5635, and the account earned interest at a rate of 4.8% APR, compounded quarterly, each year. Having made her last deposit one year ago, Adriana now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.80% compounded quarterly. If Ms. Grandioso plans to withdraw $5000 from the account at the end of each quarter for the next 9 years (36 quarters), what will be the account balance total exactly nine years from now, immediately after she makes the last quarterly withdrawal?
Abdullah deposits OMR 1200 at the end of every year for 20 years and the deposit earns a compound interest of 5.33% per annum. Calculate the value of this annuity at the end of 20th year. Select one:
Shiro’s grandfather has just announced that he’s opened a saving account forShiro with a deposit of RM10,000. Moreover, he intends to make another ninesimilar deposit for the rest nine years at beginning of each year. If the savingsaccount pays 8 percent interest, determine the amount Shiro accumulated atthe beginning of 10 years.
Anthony plans to deposit $500,000 now and $10,000 every 6 months for 5 years into an account. Determine the amount in the account 2 years after the last deposit. The interest rate is 12% compounded quarterly.
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sara wants to deposit equal payments in BDO at the end of every month so that her daughter, Duchess, can withdraw a million pesos on her 18th birthday. She will make the first deposit one month after Duchess' 6th birthday. If interest is 15% compounded annually, what is the amount of the monthly payment?
adam made an investment of $33,000. The investment pays 7.75% p.a. compounded quarterly. He will be receiving equal monthly payments at the beginning of the month, into perpetuity. The first payment the investment makes to Adam will begin in exactly three years from today. What is the monthly payment Adam will be receiving?
Alina deposits $129 at the end of every six months into an account that earns 2.56% compounded monthly. Find the future value of the account in 10 years and 6 months. Round your answer to the nearest cent. future value = S
Jill makes monthly payments of $125 into a savings plan which pays 7.5% annual interest. At the end of 30 years find the following: The amount the account is worth and The total deposits Jill made.
An annuity provides for 20 annual payments. The first payment of $ 100 is made immediately and the remaining payments increase by 15 % per year. Interest is calculated at 20 % per year. Calculate the present value of the annuity
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