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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Find the size of the monthly bank payment: P=$75,000 interest= 7 3/4% time= 4 months
5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function. P(t)=100(10)^.009 a. Evaluate P(0) and explain what it means in this context. b. Approximately how many years will it take for the amount of money in your bank account to reach $120? c. What year will you have $120 in your savings account?
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[1] Directions: Identify if the problem involves simple interest or compound interest. Then, solve the problem. Show complete solution. If you deposit Php4,000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account.
Provide a complete solution and answer for the given problem in the attached image.
3) 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?
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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A bank features a savings account that has an annual percentage rate of r=3.4% with interest compounded weekly. Alfonso deposits $11,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, rr is the annual percentage rate, nn is the number of times each year that the interest is compounded, and tt is the time in years. What values should be used for P, r, and n?P= , r= , n= How much money will Alfonso have in the account in 10 years?Answer = $ .Round answer to the nearest penny. What is the effective annual rate for the savings account?effective rate = %.Round answer to 3 decimal places.

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