Recently, a certain bank offered six-month CDs at 5.0% interest compounded monthly and one-year CDs at 5.20% interest compounded monthly. Maria Ruiz bought a six-month $2,000 CD, even though she knew she would not need the money for at least a year, because it was predicted that interest rates would rise. (Round your answers to the nearest cent.) (a) Find the future value of Maria's CD. $ (b) Six months later, Maria's CD has come to term, and in the intervening time, interest rates have risen. She reinvests the principal and interest from her first CD in a second six-month CD that pays 5.31% interest compounded monthly. Find the future value of Maria's second CD
Recently, a certain bank offered six-month CDs at 5.0% interest compounded monthly and one-year CDs at 5.20% interest compounded monthly. Maria Ruiz bought a six-month $2,000 CD, even though she knew she would not need the money for at least a year, because it was predicted that interest rates would rise. (Round your answers to the nearest cent.) (a) Find the future value of Maria's CD. $ (b) Six months later, Maria's CD has come to term, and in the intervening time, interest rates have risen. She reinvests the principal and interest from her first CD in a second six-month CD that pays 5.31% interest compounded monthly. Find the future value of Maria's second CD
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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Recently, a certain bank offered six-month CDs at 5.0% interest compounded monthly and one-year CDs at 5.20% interest compounded monthly. Maria Ruiz bought a six-month $2,000 CD, even though she knew she would not need the money for at least a year, because it was predicted that interest rates would rise. (Round your answers to the nearest cent.)
(a) Find the future value of Maria's CD.
$
(b) Six months later, Maria's CD has come to term, and in the intervening time, interest rates have risen. She reinvests the principal and interest from her first CD in a second six-month CD that pays 5.31% interest compounded monthly. Find the future value of Maria's second CD.
$
$
(b) Six months later, Maria's CD has come to term, and in the intervening time, interest rates have risen. She reinvests the principal and interest from her first CD in a second six-month CD that pays 5.31% interest compounded monthly. Find the future value of Maria's second CD.
$
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