Suppose a certain hardware store has been in business for a few years and is doing well. The owner has decided to save for a future expansion to a second location. He invests $4,000 at the end of every month at 12% interest compounded monthly. (Round your answers to the nearest cent.) (a) How much (in $) will be available for the second store after 3.5 years? $ (b) How much (in $) would be in the account if the owner saved for 7 years? $ (c) How much (in $) would be in the account after 7 years if it had been an annuity due? $
Suppose a certain hardware store has been in business for a few years and is doing well. The owner has decided to save for a future expansion to a second location. He invests $4,000 at the end of every month at 12% interest compounded monthly. (Round your answers to the nearest cent.) (a) How much (in $) will be available for the second store after 3.5 years? $ (b) How much (in $) would be in the account if the owner saved for 7 years? $ (c) How much (in $) would be in the account after 7 years if it had been an annuity due? $
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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Suppose a certain hardware store has been in business for a few years and is doing well. The owner has decided to save for a future expansion to a second location. He invests $4,000 at the end of every month at 12% interest compounded monthly. (Round your answers to the nearest cent.)
(a)
How much (in $) will be available for the second store after
3.5 years?
$
(b)
How much (in $) would be in the account if the owner saved for 7 years?
$
(c)
How much (in $) would be in the account after 7 years if it had been an annuity due?
$
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