The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each month, how much will you have in your account in 5 years? (Report an integer) (Notes: remember from our chapter 2 lecture videos, when you use financial calculator, I/Y is the "period interest rate" and N is the "number of periods". For example, if annual rate is 12% for 5 years, and if it compounds quarterly, then one period is one quarter. Therefore, the I/Y should be the quarterly rate and equal to 12/4=3, and N is the number the quarters and equal to 5*4=20 (quarters).)
The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each month, how much will you have in your account in 5 years? (Report an integer) (Notes: remember from our chapter 2 lecture videos, when you use financial calculator, I/Y is the "period interest rate" and N is the "number of periods". For example, if annual rate is 12% for 5 years, and if it compounds quarterly, then one period is one quarter. Therefore, the I/Y should be the quarterly rate and equal to 12/4=3, and N is the number the quarters and equal to 5*4=20 (quarters).)
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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The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each month, how much will you have in your account in 5 years? (Report an integer)
(Notes: remember from our chapter 2 lecture videos, when you use financial calculator, I/Y is the "period interest rate" and N is the "number of periods". For example, if annual rate is 12% for 5 years, and if it compounds quarterly, then one period is one quarter. Therefore, the I/Y should be the quarterly rate and equal to 12/4=3, and N is the number the quarters and equal to 5*4=20 (quarters).)
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