One year ago, the Jenkins Family Fun Center deposited $3,400 into an investment account for the purpose of buying new equipment four years fromtoday. Today, they are adding another $5,200 to this account. They plan on making a final deposit of $7,400 to the account next year. How much will beavailable when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?Multiple Choice$18,516.29$19,019.26$19,431.85$19,928.37$17,421.48

Final value of total deposits=$19,928.37Explanation:amount deposited one year ago ($3400) will yield…

Answered: One year ago, the Jenkins Family Fun…

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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Please show all work for 5 & 6
You want to have $10,500 saved 8 years from now. How much less can you deposit today to reach this goal if you can earn 7 percent rather than 5 percent on your savings? Multiple Choice $1,007.94 $995.72 $1,023.90 $1,036.34
Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $145,000. Inflation is expected to cause this price to increase at 4% per year over the 25 years before C. L. Donovan retires. If Donovan earns 9% on his investments, ow large must an equal, end-of-year deposit must be to provide the cash needed to buy the home 25 years from now? The equal, annual end-of-year deposit to be made each year into the account is $ (Round to the nearest cent.)
Problem 04.045 - Effort to save money for early retirement In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1300 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded annually. How much will be in the account at the end of 16.00 years? At the end of 16.00 years, the account will be $ 500068
please answer only last reuriement You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required: a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)? b) Calculate the amount of money Molly would accumulate…
Solve it with a complete solution
Future value. Jack and Jill are saving for a rainy day and decide to put $40 away in their local bank every year for the next 20 years. The local Up-the-Hill Bank will pay them 6% on their account. a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 20 years? b. Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to $400. Is there enough in the rainy-day fund to cover it? a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of 20 years? $nothing (Round to the nearest cent.)
88

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