Suppose a young couple deposits $900 at the end of each quarter in an account that earns 7.6%, compounded quarterly, for a period of 4 years. How much is in the account after the 4 years? (Round your answer to the nearest cent.) $14674 x After the 4 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 4 years in years, how much will they have in the account the account and continue to contribute $200 at the end of each quarter for the next 18 (to help with their child's college expenses)? (Round your answer to the nearest cent.) x $7541

Suppose a young couple deposits $900 at the end of each quarter in an account that earns 7.6%, compounded quarterly, for a period of 4 years. How much is in the account after the 4 years? (Round your answer to the nearest cent.) $14674 x After the 4 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 4 years in years, how much will they have in the account the account and continue to contribute $200 at the end of each quarter for the next 18 (to help with their child's college expenses)? (Round your answer to the nearest cent.) x $7541

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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John and Rosamond want to retire in 5 years and can save $140 every three months. They plan to deposit the money at the end of each quarter into an account paying 8.72% compounded quarterly. How much will they have at the end of 5 years? (Round your answer to the nearest cent.)_____$
A couple wants to retire in 35 years and can save $400 every month. They plan to deposit the money at the end of each month into an account paying 3.55% compounded monthly. How much will they have at the end of the 35 years? Give your answer to the nearest dollar.
Emma plans to loan $1,000 to her friend, who will pay a simple interest rate of 5.8% every year for the loan. If no payments are made and no further borrowing occurs between them for 13 years, then how much money will Emma' s friend owe her? $1,061.36 $1,754.00 $2,081.20 $158.00 Now, assume that Emma's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 5.8% compounded annually, all other things being equal, how much money will Emma's friend owe her in 13 years? $2,081.20 $1,058.00 $120.71 $ 1,754.00 Emma has another investment option in the market that pays 5.8% nominal interest, but it's compounded quarterly. Keeping everything else constant, how much money will Emma have in 13 years if she invests $1,000 in this fund? $158.00 $129.72 $2,114.01 $1,059.27
Jessica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 5% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)
In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 5 years? What is the amount in the account after 5 years? $ (Round to the nearest cent as needed.)
John and Rosamond want to retire in 6 years and can save $190 every three months. They plan to deposit the money at the end of each quarter into an account paying 6.48% compounded quarterly. How much will they have at the end of 6 years?
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?
3. At the time they retire, a couple has $200,000 in an account that pays 8.4% compounded monthly. If the couple decides to withdraw $3,000 a month as long as it takes, and then make a final withdraw which may be a smaller amount than $3,000 to reduce the account balance to zero. What is the amount of the last withdraw?
Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of $1,000 for 5 years and then withdraws the remaining amount 10 years from now. How much will she be able to withdraw 10 years from now, assuming the bank pays 6% compounded annually?
A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $41,000 when the child reaches the age of 18? Assume the money earns 7% interest, compounded quarterly. (Round your answer to two decimal places.)$ ??
To help with a down payment on a home, Elsa is going to invest. Assuming an interest rate of 1.73% compounded annually, how much would she have to invest to have $36,800 after 7 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0 S oo E D
A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $42,000 when the child reaches the age of 18? Assume the money earns 5% interest, compounded monthly. (Round your answer to two decimal places.)

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