Question 3) The following questions are related to Continuously Compounded Interest: If you invest $2,000 at an annual interest rate of 8% compounded continuously, calculate the final amount you will have in the account after 20 years. If you invest $10,000 at an annual interest rate of 5% compounded continuously, calculate the final amount you will have in the account after ten years. Question 4) Suppose you want to save $100,000 for a down payment on a house in 15 years. If your savings account earns 9% compounded monthly, how much would you need to deposit now to reach this goal?
Question 3) The following questions are related to Continuously Compounded Interest: If you invest $2,000 at an annual interest rate of 8% compounded continuously, calculate the final amount you will have in the account after 20 years. If you invest $10,000 at an annual interest rate of 5% compounded continuously, calculate the final amount you will have in the account after ten years. Question 4) Suppose you want to save $100,000 for a down payment on a house in 15 years. If your savings account earns 9% compounded monthly, how much would you need to deposit now to reach this goal?
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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Question 3) The following questions are related to Continuously
If you invest $2,000 at an annual interest rate of 8% compounded continuously, calculate the final amount you will have in the account after 20 years.
If you invest $10,000 at an annual interest rate of 5% compounded continuously, calculate the final amount you will have in the account after ten years.
Question 4)
Suppose you want to save $100,000 for a down payment on a house in 15 years. If your savings account earns 9% compounded monthly, how much would you need to deposit now to reach this goal?
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