receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then what is the expected annual return for his account? O 5.68% (plus or minus 1 bps) O 16.32% (plus or minus 1 bps) O 8.86% (plus or minus 1 bps) O 10.84% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then what is the expected annual return for his account? O 5.68% (plus or minus 1 bps) O 16.32% (plus or minus 1 bps) O 8.86% (plus or minus 1 bps) O 10.84% (plus or minus 1 bps) O none of the answers are within 1 bps of the correct answer

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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Similar questions

How much must be deposited today into the following account in order to have $25000 in 5 years for a down payment on a house? Assume no additional deposits are made. An account with annual compounding and an APR of 6%. How much should be deposited today?
If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will you have earned after the third year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Total Interest =
please answer in the chart form
If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year 4. Assuming that the interest is paid once per year, the effective annual rate of the invent is a. 12.2 b. 12.9 c. 11.5 d. 13.6 E. 10.8
A man will deposit P1,000.00 with a savings and loan association at the beginning of each 3 months for 9 years. If the association pays interest at the rate of 10% quarterly, find the sum to his credit just after the last deposit. a. P58,633.95 O b. P58,733.95 O c. P58,373.95 O d. P58,763.95
., If your client did NOT add any monthly contributions to the 401K account, what will the initial value of $7,100 grow to after 10 years? Assume monthly compounding. DO NOT DO ANY INTERMEDIATE ROUNDING OR YOUR ANSWER MAY BE MARKED WRONG. Answer = $ (Round to two places)
How much must be deposited today into the following account in order to have $75,000 in 7 years for a down payment on a house? Assume no additional deposits are made. An account with monthly compounding and an APR of 7%. How much should be deposited today?
Derek will deposit $1,696.00 per year into an account starting today and ending in year 17.00. The account that earns 6.00%. How much will be in the account 17.0 years from today? Submit Answer format: Currency: Round to: 2 decimal places.
-, !f your client did NOT add any monthly contributions to the Roth account, what will the initial value of $2,400 grow to after 10 years? Assume monthly compounding. DO NOT DO ANY INTERMEDIATE ROUNDING OR YOUR ANSWER MAY BE MARKED WRONG. Answer = $ (Round to two places)
What's New ur Read and analyze the situation below. Let's Save Michael is planning to apply for a loan in Quezon Cooperative Bank, he is already aware of the terms payment for his loan but when he is about to pass his application form and compare his computation with the terms of payment provided by the bank he notices some discrepancy. Michael's Computation Computation from the bank Amount of Loan: P100,000 Interest rate: 3% Amount of Loan: P100,000 Interest rate: 3% Due Date: After 3 years Computation: I = (100, 000)(0.03(3) Year 1 Year 2 Year 3 9272.70 eco Amt 0609 109,272.70 060'901 Int 0008 Amount to be paid after 3 years o C ag 000'6d = I 000'60I To enlighten he asked some explanations why they have different computations and the bank gave him the detailed computation: Initially at t = 0 000'00 P100,000 (1.03) = P103,000 P103,000 (1.03) = P106,090 P106,090 (1.03) = P109,272.70 at t = 1 at t = 2 at t = 3 Questions 1. Is Michael's computation correct? 2. Is the bank's computation…
Use the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. Bob deposits $5000 at the end of each 6 months for 14 years in an account paying 6% interest compounded semiannually A) Find the amount he will have on deposit at maturity. B) How much interest did Bob earn? Hint: Find the total amount that was deposited by multiplying the total number deposits with amount of each deposit and then subtracting this from the future value. Show the use of the appropriate formulas for each part by indicating the evaluation of the formula with information and provide the answers. Be sure to parts using the provided letters and organize your work neatly.
You put $8000 into an account earning 3%. After 2 years, you make another deposit into the same account. Seven years later ( that is, 9 years after your original $8000 deposit), the account balance is $21000. What was the amount of the deposit at the end of year 2?

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