start saving in one year from now a fixed amount for 20 total deposits. Wha is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $13,000.

start saving in one year from now a fixed amount for 20 total deposits. Wha is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $13,000.

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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5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function. P(t)=100(10)^.009 a. Evaluate P(0) and explain what it means in this context. b. Approximately how many years will it take for the amount of money in your bank account to reach $120? c. What year will you have $120 in your savings account?
Answer these essay questions. Be sure to show your work. Calculating Future Values 1. You have $35,000 you want to invest for the next 20 years to help with retirement. An investment plan is presented with a 9% payout over the first 10 years, followed by a 15% payout for the final 10 years. What is the total at the end of the full 20 years? Share how your calculations. Would the amount be different if it paid you 15% per year for the first 10 years and 9% per year for the next 10 years? Explain why or why not? 2. Finding the time necessary until you pay off a loan is simple if you make equal payments each month. However, when paying off credit cards many individuals only make the minimum monthly payment, which is generally 1% to 2% of the balance or $25 whichever is greater. Locate the credit card calculator at www.fincalc.com and work out this exercise: a) You currently owe $25,000 on a credit card with a 16% interest rate and a minimum payment of $25 or 1% of your balance. b) How…
After you do the Try It Now problem in the textbook, do the following. You invest $5 daily into an account earning 6% compounded daily. How much will be in the account after 10 years?
You plan to spend $400 to buy a new IPAD at the beginning of year3 and $1,000 to buy a new phone at the End of year 6. By using excel, please calculate how much you need to save in each year? Suppose you deposit in the beginning of each year. Suppose your last deposit is at the beginning of year 6. Interest rate is 8%. Answers should be rounded to the 2nd decimal place.
You are saving for a new house. You place $40,000 into an investment account each year for five years. How much will you have after five years if the account earns (a) 3%, (b) 6%, or (c) 9% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will finally get to buy it. If you have been depositing $193 per month in a bank account which gives 5% APR. How much do you have now in your bank account? (Round the answer two decimal point)
Future Value ComputationAt the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3 years if you earn 8% compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar.
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $36,000 at the end of each year for the next 8 years. You expect to earn 12 percent each year. Required: 1. Determine how much you will have saved after 8 years. 2. Determine the amount saved if you were able to deposit $38,000 each year. 3. Determine the amount saved if you deposit $36.000 each year, but with 14 percent interest. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 Determine how much you will have saved after 8 years. Note: Round your final answer to the nearest whole dollar. Balance in the Savings Account. Required 2 >
Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10 months Invest $1,200 and receive $130 at the end of each month for the next 10 months If this were your money, and you want to earn at least 12% interest on your money, which investment would you make, if any? Solve the problem by annual cash flow analysis.
Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $250 at 6% simple interest for 4 years $ 324.65 Need Help? Read it Talk to a Tutor
you have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanks
(Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $19,000 at the end of 11 years. To do this you plan on depositing an ←equal amount into the bank at the end of each year. If the bank is willing to pay 15 percent compounded annually, how much must you deposit each year to reach your goal? To reach your goal, your annual deposit must be $ (Round to the nearest cent.)

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