Starting today, Jamie deposits $100 in a savings account at the beginning of each month. If the accountearns 6 percent annually, what will the account value be after 6 years?a) 8,640.89b) $8,684.09c) $739.38d) $697.53Hide question 33 feedbackCorrect! Starting today, Jamie deposits $100 in a savings account at the beginning of each month. If the accountearns 6 percent annually, what will the account value be after 6 years?a) 8,640.89b) $8,684.09c) $739.38d) $697.53Hide question 33 feedbackCorrect!

Here,Monthly Deposits is $100Interest Rate (r) is 6%Time Period (n) is 6 yearsCompounding Period (m)…

Answered: Starting today, Jamie deposits $100 in…

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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Similar questions

Derek will deposit $1,696.00 per year into an account starting today and ending in year 17.00. The account that earns 6.00%. How much will be in the account 17.0 years from today? Submit Answer format: Currency: Round to: 2 decimal places.
You want to have $60,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Deposit amount
If Bob and Judy combine their savings of $1,500 and $900, respectively, and deposit this amount into an account that pays 7 % annual interest, compounded monthly, what will the account balance be after 7 years?
Lola Fritola is planning for her retirement by making quarterly payments to an annuity with each payment increasing by 0.4% every quarter. Her first payment is $5,100 and she plans to contribute for the next 1O years. How much will she have in her retirement savings if the money is invested to earn 4.2% compounded quarterly? (Round your final answer to 2 decimal places.) Retirement savings %$4
Karen wants to have $22,011 in her investment account in 6 years. If her bank offers an annual compound interest rate of 2% with monthly compounding, how much should she deposit today?
1) earn 8 percent interest per year, compounded annually. You will not withdraw any principal or interest until you retire in 48 years. Which one of the following statements is correct? Assume you deposited $6,000 into a retirement savings account today. The account will A) The interest you carn in Year 7 will equal the interest you earn in Year 14. B) The interest amount you earn will double in value every year. C) The total amount of interest you will earn will equal $6,000 x .08 x 48. D) The present value of this investment is equal to $6,000. E) The future value of this amount is equal to $6,000 x (1 + 48)".
Lydia deposits $900 at the end of each year for 9 years in a savings account. The account pays 8% interest, compounded annually. Lydia calculates that the future value of the ordinary annuity is $11,238.80. What would be the future value if deposits are made at the beginning of each period rather than the end?
1. Caroline wants to earn $500,000 at the end of eight years. How much must she deposit today to accomplish such goal, if the rate of interest is 8% compounded annually? 2. Suppose you make 20 annual payments of $2,000 each into an account that pays 5% interest. The first deposit will be made 1 year from today. How much money can be withdrawn from the account immediately after the 20th deposit?
Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75% compounded annually. How much will be in the account after 25 years? Your Answer:
Peter makes a deposit at the end of every three months into a savings account that earns interest at 3.2% compounded quarterly. He saves for 9 years, and then converts his savings into an annuity that pays him $1400 at the end of every three months for 12 years. What size of the deposit he makes while he is saving? ...
Mr & Mrs. John have decided to start a monthly savings program in order to provide for their son's college education. How much should they deposit at the end of each month in a savings account earning interest at the rate of 6%/year compounded monthly so that at the end of the tenth year the accumulated amount will be RM50,000?
Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings account for the next 9 years. If the account has an annual interest rate of 0.6%, how much should each of his deposits be? Round your answer to the nearest dollar.

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Starting today, Jamie deposits $100 in a savings account at the beginning of each month. If the account earns 6 percent annually, what will the account value be after 6 years? a) 8,640.89 b) $8,684.09 c) $739.38 d) $697.53