The four people below have the following investments.InvestedAmount$ 11, 20014, 20021, 20017,200JerryElaineGeorgeKramerReg 1ARequired:1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1)1-b. Who has the greatest investment accumulation?JerryElaineInterestRateComplete this question by entering your answers in the tabs below.Req 1BGeorgeKramer12%879CompoundingQuarterlySemiannuallyFuture ValueAnnuallyAnnuallyCalculate the future value at the end of three years.Note: Use Excel or a financial calculator Round your answers to 2 decimal places.

Future value refers to the value of an investment or asset at a specific point in the future after…

The four people below have the following investments. Invested Amount $ 11, 200 14,200 21,200 17,200 Jerry Elaine George Kramer Interest Rate 12% 8 7 9 Compounding Quarterly Semiannually Annually Annually Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation?

The four people below have the following investments. Invested Amount $ 11, 200 14,200 21,200 17,200 Jerry Elaine George Kramer Interest Rate 12% 8 7 9 Compounding Quarterly Semiannually Annually Annually Required: 1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation?

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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All computations must be done and shown manually Question 2 You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?
Here are two ways of investing $40,000 for 20 years. Lump-Sum Deposit Rate Time $40,000 5% compounded annually 20 years Periodic Deposit Rate Time $2000 at the end of each year 5% compounded annually 20 years Use this information and the formulas A=P(1+r)t and A=P(1+r)t−1r to complete parts a. and b. below.
need complete answer with working
Of the following five investments, which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 1.Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). 2.Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20payments). 3.Investment D pays $2,500 at the end of 10 years (just one payment). 4.Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10payments). Please explain answer.
Use the sinking fund formula shown to the right to determine the semiannual payments with 6% interest are compounded semiannually for 4 years to accumulate $17,000. p=Arn1+rnnt−1 The semiannual invested payment is $
find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time 1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years. answer is about 620,187$
Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.
Bruno deposited $7,500 into an investment account and seven years later, the balance in the account was $10,910. What is the rate of return on this investment if interest is compounded annually? 5.5% 6.0% 6.5% 45.5%
Calculate the future value in five years of $4,000 received today if your investments pay for the following interest rates. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) 6 percent compounded annually b. 8 percent compounded annually a. C. 10 percent compounded annually d. 10 percent compounded semiannually 10 percent compounded quarterly e. Future Value
1 Which formula property calculates the future value of monthly deposits of $800 left on 2 deposit for 10 years at an annual return of 8%? Assume an initial deposit of $20,000. Your formula must return a positive value. 4 Number of years 5 Payments per year 6 Monthly deposit 7 Annual return 8 Initial deposit 10 12 $800 8% $20,000 Multiple Choice =FV(B7/B5,B4 B5,B6,B8) =-FV(B7/85,84-85,B6,B8) -FV(B7.85,84-85,B6) =-FVB7.84-85.B6.B8)
Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund balance of $209,004. At what interest rate must Karen’s investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate %
What is the future value of an annuity due of $800 paid semi-annually for the next 7 years, with a yield of 5% p.a. compounded semi-annually? Select one: a. $13,215.16 b. $6,923.22 c. $11,200.00 d. $13,545.54

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