Sly, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $9000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) 4 $ 13698 (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S= 9000 1 + 9000(1 + (0.0525))** S = $ that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)

Sly, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $9000 is deposited in a savings account drawing 51% annual interest compounded continuously. (Round your answer to the nearest cent.) 4 $ 13698 (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S= 9000 1 + 9000(1 + (0.0525))** S = $ that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)

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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An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 P/Y = 12 I/Y = 3.02 FV 6,455.41 PMT = $ -124 = years N= 192 to the nearest integer) PV = $14,892.17 X x (round = month(s)
te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per year, how much money will be in the account at the end of that time period?
(c) How much money must be put into a bank account yielding 3.5% (compounded annually) in order to have $1,250 at the end of 10 years (round to nearest $1)?
3. *A savings plan requires an investor to pay 10 installments, each one of $500, due at the end of every year for 10 years. One year after the last of such installments the bank will start making annual payments to the investor, each one for a fixed amount P, for n years. Assume an effective interest rate of 5% p.a. (a) If n = 7 determine the value of P. (b) If n = ∞o, i.e. payments from the bank continue indefinitely, determine the value of P.
How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years? a Click the icon to view some finance formulas. ..... The amount of money that should be deposited is $ (Round up to the nearest cent.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A = P 1+ P = A =Pet Y = - 1 nt 1+ Print Done
1. What is the future worth of a serios of equal deposits of $1500 for 10 years in a savings account that earns 10% annual interest if: a) All deposits are made at the end of the year? b) All deposits are made at the beginning of each year?
What is the value today of a money machine that will pay $1,548.00 per year for 17.00 years? Assume the first payment is made 3.00 years from today and the interest rate is 7.00%. Submit Answer format: Currency: Round to: 2 decimal places.
A bank features a savings account that has an annual percentage rate of r=3.4% with interest compounded weekly. Alfonso deposits $11,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, rr is the annual percentage rate, nn is the number of times each year that the interest is compounded, and tt is the time in years. What values should be used for P, r, and n?P= , r= , n= How much money will Alfonso have in the account in 10 years?Answer = $ .Round answer to the nearest penny. What is the effective annual rate for the savings account?effective rate = %.Round answer to 3 decimal places.
Ten Thousand dollars is deposited into a savings account at 1.8% interest compounded monthly. How many months are required for the balance to reach $10,665.74? After how many months will the balance exceed $11,000? Do not solve by formula ONLY TVM SOLVER. I need to know which numbers to plug into the TVM solver and where.
3
If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much interest will the account pay over 2 years? Round your answer to two decimal places if necessary.
The interest on a particular savings account is compounded continuously. The account initially had $2,200 deposited in it. The worth of the account after t-years can be calculated using the formula: A(t)=2200e0$1 (a) By what percent will the worth of the account increase per year? Round to the nearest hundredth of a percent. (b) To the nearest tenth of a year, how long will it take for the worth of the account to triple? (c) If another investment began with a principal of $2,500 and earned simplest interest of 3.8% applied once per year, which investment would be worth more after 10 years? Justify

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