Refer to the program above.1) With an initial savings of $10,000 and an interest rate of 0.05, what's the amount of savings at the beginning of year 4? Ignore cents and do not include the dollar sign ($).- Input box with the value: 11576.25- Button labeled: Check- Link labeled: Show answer2) If the interest_rate is 3% and initial_savings are $5000, savings will be greater than $7500 after how many loop iterations? Note: The beginning of year 10 is after 9 loop iterations.

Future value is that amount which includes the initial investment and interest earned on that…

Refer to the program above. 1) With an initial savings of $10000 and an interest rate of 0.05, what's the amount of savings at the beginning of year 4? Ignore cents and do not include the dollar sign ($). 11576.25 42

Refer to the program above. 1) With an initial savings of $10000 and an interest rate of 0.05, what's the amount of savings at the beginning of year 4? Ignore cents and do not include the dollar sign ($). 11576.25 42

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

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Refer to the program above.

1) With an initial savings of $10,000 and an interest rate of 0.05, what's the amount of savings at the beginning of year 4? Ignore cents and do not include the dollar sign ($).

- Input box with the value: 11576.25
- Button labeled: Check
- Link labeled: Show answer

2) If the interest_rate is 3% and initial_savings are $5000, savings will be greater than $7500 after how many loop iterations? Note: The beginning of year 10 is after 9 loop iterations.

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Suppose you are starting your savings a little bit late, 42 years old. Before that there was no savings balance. Given 10,000 at 42 years old with the compounding interest rate of 7%. Calculate the savings balance for each year after 42. There is also no additional contributions but you kept the 10,000 until you are 61 years old. *Use excel, and excel calculations to solve*
Suppose you just won the state lottery, and you have a choice between receiving $2,515,000 today or a 20-year annuity of $220,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. O a. 6.88% O b. 12.96% O c. 6.04% O d. 5.69% O e. 8.75%
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