$5,400 was deposited at the end of every month for 6 years into a fund earning 2.8% compoundedmonthly. After this period, the accumulated money was left in the account for another 5.5 years atthe same interest rate.a) Calculate the accumulated amount at the end of the 11.5-year term.b) Calculate the total amount of interest earned during the 11.5-year period.

Future value of deposit includes the amount being deposited and amount of compounding interest…

Answered: onthly. After this period, the…

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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100 is deposited into an account at the end of each 3-year period for 36 years. The accumulated value at the end of 36 years is 4 times the accumulated amount in the account at the end of 12 years. Find the effective annual rate and the accumulated amount at the end of 36 years.
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Three years ado, Adam deposited RMY in account that paid interest at 4.2% compounded semi - annually. Today, another RM 6,000 is deposited into the same account. If the accumulated amount in the account four years from now is RM 33,839.39, Find the value of Y
Use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $9000 invested at an APR of 3.8% for 14 years.
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At the end of every year, $2000 is deposited into an account that earns interest of 10% /a, compounded annually. The value of the account after 10 years is: -$ 31,874.85 $ 114,549.99 - $ 114,549.99 $31,874.85
Determine the interest earned after 8 years if $3000 is invested in each of the following accounts. A) an account earning 5.29% interest compounded daily B) an account earning 5.14% simple interest
Following is a table for the present value of $1 at compound interest: Year 6% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 2.487 4 3.465 3.170 4.212 3.791 10% 12% 0.893 1.690 2.402 3.037 5 3.605 Using the tables provided, the present value of $15,007 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, is Oa. $11,886 Ob. $47,572 Oc. $10,250 Od. $15,007

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onthly. After this period, the accumulated money was left in the account for another 5.5 yea e same interest rate. Calculate the accumulated amount at the end of the 11.5-year term. Calculate the total amount of interest earned during the 11.5-year period. $