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Suppose that you plan to retire in 40 years. You put 1000 dollars in a bank account which sa per period interest rate of 0.5%, and interest is compounded monthly. t was your effective annual interest rate? enter your answer as a percent (i.e., 5.00% ild be entered as 5.00) 17 w much money will be in the account at the end of 40 years ($)? Round to the nearest dollar.

Suppose that you plan to retire in 40 years. You put 1000 dollars in a bank account which sa per period interest rate of 0.5%, and interest is compounded monthly. t was your effective annual interest rate? enter your answer as a percent (i.e., 5.00% ild be entered as 5.00) 17 w much money will be in the account at the end of 40 years ($)? Round to the nearest dollar.

Essentials Of Investments
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 that you plan to retire in 40 years. You put 1000 dollars in a bank account which earns a per period interest rate of 0.5%, and interest is compounded monthly. What was your effective annual interest rate? enter your answer as a percent (i.e., 5.00% would be entered as 5.00) 6.17 How much money will be in the account at the end of 40 years ($)? Round to the nearest dollar. 10957 If inflation during this time period averaged 1.7% annually, how much purchasing power (in present $, not future $) did you accumulate with your investment? Round to the nearest dollar. Please answer all parts of the question.
Transcribed Image Text:Suppose that you plan to retire in 40 years. You put 1000 dollars in a bank account which earns a per period interest rate of 0.5%, and interest is compounded monthly. What was your effective annual interest rate? enter your answer as a percent (i.e., 5.00% would be entered as 5.00) 6.17 How much money will be in the account at the end of 40 years ($)? Round to the nearest dollar. 10957 If inflation during this time period averaged 1.7% annually, how much purchasing power (in present $, not future $) did you accumulate with your investment? Round to the nearest dollar. Please answer all parts of the question.
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