(Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $8,000 in a savings account paying annual compound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3, 7, and 17 year(s). b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part (a) using 8 percent and 10 percent. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?
(Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $8,000 in a savings account paying annual compound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3, 7, and 17 year(s). b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part (a) using 8 percent and 10 percent. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?
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
Related questions
Question
Transcribed Image Text:(Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently
sold her Porsche, placed $8,000 in a savings account paying annual
compound interest of 6 percent.
a. Calculate the amount of money that will accumulate if Leslie leaves the
money in the bank for 3, 7, and 17 year(s).
b. Suppose Leslie moves her money into an account that pays 8 percent or
one that pays 10 percent. Rework part (a) using 8 percent and 10 percent.
c. What conclusions can you draw about the relationship between
interest rates, time, and future sums from the calculations you just did?
a. After placing $8,000 in a savings account paying annual compound
interest of 6 percent, the amount of money that will accumulate if Leslie
leaves the money in the bank for 3 year(s) is $. (Round to the
nearest cent.)
Transcribed Image Text:(Related to Checkpoint 5.2) (Future value) To what amount will $5,100
invested for 10 years at 9 percent compounded annually accumulate?
CHO
$5,100 invested for 10 years at 9 percent compounded annually will
accumulate to $ (Round to the nearest cent.)
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