LMoving to another question will save this response.Question 4Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?a. $205.83b. $228.07c. $252.08d. $240.08e. $216.67A Moving to another question will save this response.Type here to searchyWLG Question Completion Status:A Moving to another question will save this response.Question 2The concept of time is money is having the following concept, except:O Compound InterestO Simple InterestDiscounting MethodOrdinary annuity dueMoving to another question will save this response.Type here to searchCC

The future value of money includes the amount being deposited today and compound interest being…

Answered: stion 4 Ellen now has $125. How much…

stion 4 Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5 a. $205.83 b. $228.07 c. $252.08 d. $240.08 Oe. $216.67

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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hw 3 10) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $250. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 9 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 15years ago Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? Part 1 a. The amount Nick has accumulated in his retirement account is $_____
QUESTION 9 Two years ago, Donald invested $1,560.00. He has earned and will earn compound interest of 8.76 percent per year. If Virginia invests $1,640.00 in 1 year from today and earns simple interest, then how much simple interest per year must Virginia earn to have the same amount of money in 6 years from today as Donald will have in 6 years from today? Answer as an annual rate. O A rate equal to or greater than 38.20% but less than 58.20% O A rate less than 17.73% or a rate greater than 60.11% O A rate equal to or greater than 18.69% but less than 38.20% O A rate equal to or greater than 17.73% but less than 18.69% O A rate equal to or greater than 58.20% but less than 60.11%
Problem 7-21 Auntie Kitty sells her home for $200,000, which is then invested to earn 4 percent annually. If her life expectancy is ten years, what is the maximum amount she can annually spend on a nursing home, doctors, and taxes? Use Appendix D to answer the question. Round your answer to the nearest dollar.The maximum amount that can be annually spend is $ . If the return were to double to 8 percent, will the amount she may spend each year more than double? Use Appendix D to answer the question. Round your answer to the nearest dollar.If the return were to double, the amount that can be annually spend will -Select-more than doubleless than doubledoubleItem 2 and will be equal to $ .
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CH9HW i Help Save & Exit Submit a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $140,000 in a savings account on January 1 of this year. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,400 in a savings account. The account will earn 11 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA of
QUESTION 4 Jamal wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded CONTINUOUSLY. Which of the following choices will correctly calculate the amount of money in Jamal's account after 9 years? A. 7.2) 12x9 Amount = 4300 1+ 12 O B. Amount = 0.072x9xe4300 O C. Amount = 4300e0.072 × 9 12 x 9 D. 0.072 Amount = 4300 1+ 12 7.2 x 9 O E. Amount = 4300e O F. Amount = 4300x 7.2xe9
Problem 8 His recently departed Uncle Jimmy, may he rest in peace, has left John a 25-year annuity (25 annual payments). He will receive the first payment of $5,000 in 4 years from today, and payments will grow at a constant rate of 5% per year thereafter. What is the present value of his inheritance if he is discounting at a) 3% (EAR); b) 5% (EAR); and c) 10% (EAR) ?

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