Use the table to solve the following problem. Round to the nearest cent. Jenny Sherrer has $ 29,000 to invest and believes that she will earn 8% compounded semiannually. Find the compound amounts if she invests for 4 years and for 8 years. Then find the additional amount earned due to the longer period. $ 14,627.89 $ 5,762.59 $ 45,675.29 $ 20,390.48

Use the table to solve the following problem. Round to the nearest cent. Jenny Sherrer has $ 29,000 to invest and believes that she will earn 8% compounded semiannually. Find the compound amounts if she invests for 4 years and for 8 years. Then find the additional amount earned due to the longer period. $ 14,627.89 $ 5,762.59 $ 45,675.29 $ 20,390.48

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

Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $ 8305.13
Suppose you want to buy a $143,000 home. You found a bank that offers a 30-year loan at 3.9% APR.A. What will be your monthly payment? (Round to the nearest cent.)B. How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.)C. Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) D.How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) E. How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
2
David and Helen Zhang are saving to buy a boat at the end of ten years. If the boat costs $22,500 and they can earn 12% a year on their savings, how much do they need to put aside at the end of years 1 through 10? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual savings
You want to buy a nice road bike. You place $2,400 each year in an investment account that earns 4% compounded annually. How much will be in the account after (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (EV of $1. PV of $1. EVA of $1, and PVA of $1) a. b. C Annuity Annual Interest Payment Rate Compounded $ 2,400 2,400 2,400 4% Annually 4% Annually 4% Annually Period: Invested 2 years 3 years 4 years Future Value of Annuity
Wendy has $23,000.00 invested in a bank that pays 14.25% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
Tom just won a lottery. he plans to create a money market certificate in a bank to prepare a down payment for a house $400,000. The down payment is 20% of the house price, and the current five-year APY is 3.25%. How much should you put in the money market certificate account to accumulate the down payment? Group of answer choices $340,886.41 $93,872.91 $469,334.56 $68,117.28
Betty plans to invest some money so that she has $3,800 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.)a. 4.2 percent compounded daily. Amount required to be invested $ b. 4.9 percent compounded monthly. Amount required to be invested $ c. 5.2 percent compounded quarterly. Amount required to be invested $
Using the TVM calculator, compare the following if the investment pays 7%/a compound annually and payments are made until age 65. Calculate the future value of each investment and the total amount paid in. which would you choose? a) depositing $1500 every year starting at age 20. b) depositing $4500 every year starting at age 50.
Solve each problem and round your answers to the hundredth decimal point 1. Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down payment? 2. Fred is paying off a $24,000 loan over 4 years with $580 a month payments. If he will pay the entire loan off in that time, what is the interest rate? 3. How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest? 4.BCD Corporation is going to place $100,000 into an annuity. Then, it is going to add $25,000 a quarter to the annuity for the next 15 years. If the annuity draws 9% interest, how much will it be worth at the end of the time? 5. Karen decides to put the child-support payments from her previous husband into an annuity for the education of her two children. At the end of each month for 8 years, she puts $300 into a mutual fund that has yielded 9% compounded monthly. Find the amount of the annuity.
A man wants to buy a $33,000 car. He will put 20 % down and finance the rest over 5 years. How much will his monthly payments be if he borrows the money at 4.8% annual interest, compounded monthly? Give the answer correctly to 2 decimal places.

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