Use the compound interest formula for compounding more than once a year to determine the accumulated balance after the stated period. A $20,000 deposit at an APR of 3.7% with quarterly compounding for 32 years. The amount after 32 years will be $(Round to the nearest cent as needed.)

Use the compound interest formula for compounding more than once a year to determine the accumulated balance after the stated period. A $20,000 deposit at an APR of 3.7% with quarterly compounding for 32 years. The amount after 32 years will be $(Round to the nearest cent as needed.)

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

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.) Yearly deposits earning 12.3% to accumulate $7500 after 12 years.
Use the formula for computing future value using compound interest to determine the value of an account at the end of 9 years if a principal amount is $13,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded quarterly.
If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account offering a stated annual rate of interest r = 0%, find the balance in the account 12 years from today (at the end of year 12).
A bank pays 6% interest, compounded semiannually. Use the appropriate formula to find how much should be deposited (in $) now to yield an annuity payment of $700 at the beginning of each six months, for 16 years. (Round your answer to the nearest cent.) $
Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of every six months, for 17 years if a bank pays 8% interest, compounded semiannually. (Round your answers to the nearest cent.)
Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $19,654 to be accumulated in 4 years; quarterly payments of $1075 The interest rate needed is approximately%. (Type an integer or decimal rounded to two decimal places as needed.)
Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,300 is deposited quarterly for 10 years at 7% per year FV = $
Find the future values of the ordinary annuities at the given annual rate r compounded as indicated. The payments are made to coincide with the periods of compounding. (Round your answer to the nearest cent.) PMT = $200, r = 2.7%, compounded semiannually for 25 years
Find the compound amount for the following deposit. $18,000 at 6% compounded semi-annually for 7 years. The compound amount after 7 years will be $ (Round to the nearest cent.)
Mark Welsch deposits $7,300 in an account that earns Interest at an annual rate of 8%, compounded quarterly. The $7,300 plus earned Interest must remain in the account 1 years before it can be withdrawn. How much money will be in the account at the end of 1 years? (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Table Factor Total Accumulation
Find the periodic payment which will amount to a sum of $9000 if an interest rate 8% is compounded annually at the end of 17 consecutive years. The periodic payment is $ (Round to the nearest cent.)
Use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $9000 invested at an APR of 3.8% for 14 years.

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