Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit $12,000 now, how much will you have in the account in 5 years? (Round to the nearest cent.) What was the interest earned? (Round to the nearest cent.) Now suppose that you would like to have $20,000 in the account in 5 years. How much would you need to deposit now? (Round to the nearest cent.)

Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit $12,000 now, how much will you have in the account in 5 years? (Round to the nearest cent.) What was the interest earned? (Round to the nearest cent.) Now suppose that you would like to have $20,000 in the account in 5 years. How much would you need to deposit now? (Round to the nearest cent.)

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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Similar questions

Suppose you put $1000 in an account today and you need to have $6727.5 in the future. If the bank pays 10%, how many years (n) will it take you to have $6727.5?
1. You deposited PHP1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit 2. You need to save up for P1,500 in 1 year. How much should you save now if the bank offers a rate of 5%? (Find the present value)
You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When you use the compound interest formula we discussed to find the amount you will have after 10 years, you will have: PN = 10000(a number). What is the number? Round to 3 decimal places.
Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making monthly deposits. Your payments increase every month by Sx while your first month deposit is $150. What should x be if you want to purchase your dream car in 5 years? Assume monthly interest of 0.25%, and monthly compounding. Use tables here. Your Answer:
You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2 years, the interest rate is increased to 7.52% compounded quarterly. What will be the value of the account after a total of 4 years? i Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar as needed.)
Suppose you deposit $10 every week into an account that earns 4% interest compounded weekly. How much money (to the nearest cent) will you have in the account after 5 years? Summarize the information provided, stating the interest rate in a decimal form. d = r = N = k = Solve the problem and give your answer here
Suppose you take out a car loan that requires you to pay $7,000 now, $4,000 at the end of year 1, and $6,000 at the end of year 2. The interest rate is 5% now and increases to 10% in the next year. What is the present value of the payments? Enter your response below rounded to 2 decimal places. Number
Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 20 years. How much will you have in the end? $ Suppose instead you didn't invest anything for the first 6 years, then deposited $200 a month for 20 years into an account earning 9% compounded monthly. How much will you have in the end?
a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay youback Rs.75, 000 after 8 years. What rate offered by bank? c) You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will payat the end of two years to fully payback this loan while bank is not imposing any fineon you?
if your bank pays you 1.5% interest and you deposit $700 today, what will be your balance in 5 years? (round to the nearest cent)please show step by step
You will receive a cash payment of $6.4 in 4 years. If the relevant interest rate is 16.4%, how much is it worth today? Answer:
How much would you still owe at the end of the first year, after you have made the first payment?

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