Suppose you deposited $39,000 in a bank account that pays 5.25% withdaily compounding based on a 360-day year. How much would be in theaccount after 8 months, assuming each month has 30 days?Select the correct answer.O a. $40,389.07O b. $40,375.67O c. $40,402.47d. $40,368.97Oe. $40,382.37 Assume that you own an annuity that will pay you $15,000 per year for 12years, with the first payment being made today. You need money today toopen a new restaurant, and your uncle offers to give you $80,000 for theannuity. If you sell it, what rate of return would your uncle earn on hisinvestment?Select the correct answer.O a. 21.76%O b. 19.06%O c. 19.96%O d. 18.16%O e. 20.86%

Future value is the amount initially deposited and amount of comounding interest accumulated over…

Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a 360-day year. How much would be in t account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67

Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a 360-day year. How much would be in t account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67

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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Question

Suppose you deposited $39,000 in a bank account that pays 5.25% with
daily compounding based on a 360-day year. How much would be in the
account after 8 months, assuming each month has 30 days?
Select the correct answer.
O a. $40,389.07
O b. $40,375.67
O c. $40,402.47
d. $40,368.97
Oe. $40,382.37

Assume that you own an annuity that will pay you $15,000 per year for 12
years, with the first payment being made today. You need money today to
open a new restaurant, and your uncle offers to give you $80,000 for the
annuity. If you sell it, what rate of return would your uncle earn on his
investment?
Select the correct answer.
O a. 21.76%
O b. 19.06%
O c. 19.96%
O d. 18.16%
O e. 20.86%

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Provide a complete solution and answer for the given problem in the attached image.
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Some time ago, you put £500 into a bank account for a “rainy day.” Since then, the bank has been paying you 1 percent per month, compounded monthly. Today, you checked the balance, and found it to be £708.31. How long ago did you deposit the £500?
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