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

If a person spends $6 a week on coffee (assume $300 a year), what would be the future value of that amount over 8 years if the funds were deposited in an account earning 3 percent?
Can you show me how this is done? Ava Darling plans to buy a house in 10 years and needs $17,446 for a down payment. If the annual interest rate is 6%, how much does Ava Darling need to invest today to have $17,446 in ten years? Selected Answer: 15,469 Correct Answer: 9,742 ± 5
A person who invests $1,000 each year finds one choice that is expected to pay 4 percent per year and another choice that may pay 7 percent. What is the difference in return if the investment is made for four years?
K Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $55 per month into an account with an APR of 7%. ... Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3
The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to r their goal? (Round your answer to the nearest cent.) $
After working for years in her small business. Dr Ewere was finally making money. Since she was still worried about emergencies, she decided to put $185,750 in an investment for 4 years. Find the future value if it earns (a) 8%, per year compounded quarterly and (b) 4%, per year compounded semi annually. (c) Then find the difference between the two
Find the amount of money needed to be invested for an interest rate of 2% compounded semi-annually for 22 years so that the person wants their money to grow to $49,000. Do not round-off anything until you obtain the final answer. Round your answers to the nearest dollar.
Sonia wants to have $13,000 in 8 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.) $
Helen Quick made an investment of $20,542.75. From this investment, she will receive $2,400 annually for the next 15 years starting one year from now. Click here to view the factor table What rate of interest will Helen's investment be earning for her? (Hint: Use Table 4.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, e.g. 25%.) Rate of interest %
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.)
An investment product offers a monthly rate of return of 5%. If Amy invests $1,000 today for this product, how long does it take for Amy's money to grow to $1,500?
Isabella purchased $20,000 worth of 26-week T-Bills for $19,700. What will be the rate of return on her investment? (Round your answer to two decimal places.)

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