Steven Spear invested $14,000 today in a fund that earns 10% compounded annually.Click here to view factor tables.To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10%annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g.458,581.)Investment at 10% annual interestInvestment at 10% annual interest, compounded semiannually $

Periodical Investments in Annuity can be broadly divided into two categories, Ordinary annuity and…

Answered: Steven Spear invested $14,000 today 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

An investor deposits $1000 at the beginning of each year for five years in a fund earning 5% effective. The interest from this fund can be reinvested at only 4% effective. Show that the total accumulated value at the end of ten years is 1250($111.04 - $1.04 −1).
Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? (2 marks) b) How much money do you have in your account today? (4 marks) c) If you wish to have $85,000 now, how much should you have invested 15 years ago? (4 marks)
Andrew Bogut just received a signing bonus of $1,082, 000. His plan is to invest this payment in a fund that will earn 8%, compounded annually. (Use the tables below.) If Bogut plans to establish the AB Foundatiion? instead of investing the entire $1,082, 000, Bogut invests $287,300 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2, 162, 918 foundation at the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e. g. 458, 581.)
5
A company has $44,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (PV of $1 EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $55,673 $45,760 $55,550 $54,560 $59,862

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