If an investment advisor promises to double your money in 6 years, she's promising an annual return of approximately. % however, you earn an actual annual retum of 7.75%, would takeapproximatelyOA 83, 108years to double your money.OB. 12.0. 155Oc. 93, 12.0OD. 120, 9.3

An annuity is a contract between the investor and a finance company in which an investor makes a…

Answered: S however, you earn an actual annual…

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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You have invested $2,500 in an asset that will yield 8% each year for the next 5 years. How much money will you get back from your investment at the end of the 5th year? Multiple Choice $3,673.32 $2,700 $3,693.64 $2,314.81 $1,701.46 Show all calculation steps and formulas if necessary
3 O Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $400 per year for 16 years at 6%. $ 2,790.13 b. $200 per year for 8 years at 3%. $ 1,768.79 c. $900 per year for 8 years at 0%. 7,200 d. Rework parts a, b, and c assuming they are annuities due. Future value of $400 per year for 16 years at 6%: $ Future value of $200 per year for 8 years at 3%: $ Future value of $900 per year for 8 years at 0%: $ $ 2,962.29 1,852.24 7,200
Using the Rule of 72, approximately how many years are needed to double a $100 investment when interest rates are 5.25 percent per year? (Round your answer to 2 declmal places.) Period years < Prev o of 10 e here to search Eゴ ( F4 F5 F7 F10 F11 F12 76 #
Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.
You invest $100 into a CD offering 5% APR with semi-annual compounding (i.e., two times per year). How much money will you have in the account after 1 year? 118.54 120.00 105.06 125.32
Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions. 19. Create the following table of values for this investment plan. Saving Later Plan 2, tuho table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate varlable. P%3D r = A = M = n = 20. Indicate the best formula to use to compute the amount available after 15 years. 21. Substitute the values into the formula and compute how much money will be available after 15 years.
Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions: 19. Create the following table of values for this investment plan, Saving Later Plan 2, (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. P = A = t 3D M =
Please solve asap
Plz solve both correctly I vill definitely upvote.
d. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000, 10 years from today in an investment paying 10% semiannually? Do not answer in image format
am. 113.
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S however, you earn an actual annual retum of 7.75%. twould take It an investment advisor promises to double your money in 6 years, she's promising an annual return of approximately. approximately years to double your money OA 83 108 OB. 120. 155 OC. 93 12.0 OD. 120,93