What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 8% compounded quarterly Q The amount of the quarterly deposits A should be $ 0 ! 8% Compounded quarterly 1 I ! 2 (Round to the nearest dollar.) 3 I ! $1,500 1 4 1 ! A (Deposit) CE Quarters 6 5 1 S 7 $2,500 8

What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 8% compounded quarterly Q The amount of the quarterly deposits A should be $ 0 ! 8% Compounded quarterly 1 I ! 2 (Round to the nearest dollar.) 3 I ! $1,500 1 4 1 ! A (Deposit) CE Quarters 6 5 1 S 7 $2,500 8

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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PART 2 Financial Tools P5-19 Future value of an annuity For each case in the accompanying table, answer the questions that follow. Case B E meny Amount of annuity $ 2,500 30.000 11,500 6,000 Interest rate *%* 23^2 12 14 Deposit period (years a. Calculate the future value of the annuity assuming that it is (1) An ordinary annuity, (2) An annuity due. b. Compare your findings in parts all) and a(2). All else being identical, which type of annuity-- ordinary or annuity due—is preferable? Explain why,
Question 14 Suppose for an annuity due, you want to have $30,000 in the bank after 20 years. Assuming you make deposits at the beginning of each year at an interest rate of 4%, how much would you have to deposit at the start of each year, assuming that each deposit is the same amount? A) s968.70 B $816.22 $625.00 $737.24
PLEASE ANSWER ASAP
Nov 5.pdf Q Q Ara 2.56 Consider the cash flow series given in the accompanying table. What value of C makes the deposit series equivalent to the withdrawal series at an interest rate of 6% compounded annually? 5C 4C 3C 2C C 1 2 3 4 6. 8. 6. 10 $300 $600 $900 $1,200 $1,500 12.00 000 harrels of oil during
Question 3 A deposit of $330 earns the following interest rates: 8 percent in the first year. 6 percent in the second year. 5 percent in the third year. What would be the third year future value? (Round your answer to 2 decimal places. Future Value
am. 120.
Q4: Suppose that a capital of £2700 earns £400 of interest in a bank account over 4 years. Given that interest remains the same for 4 years, what is simple interest rate 3.673 7 3.703 7 3.573 7 3.773 N
Problem 3 To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0. SLO00 • 10 $ 500 A. P= $ 4,912 B. P= $ 4,465 C. P= $ 5,374 D. P=$ 5,912
Mallings Review View Help e Search AaBbCcDd AaBbCcDd AaBbC AaBb AaBbCcD 三加三三、、田、 1 Normal 1 No Spac. Heading 1 Heading 2 Heading 3 Paragraph Styles 1) Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,800 is deposited quarterly for 20 years at 5% per year FV = $ 梦 0 93
A3)
PLEASE ANSWER ASAP
QUESTION 3 Suppose you deposit $2.500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after 15 years? Round your answer to the nearest cent. below is an example how to do problem mple 4 A certificate of deposit (CD) is a savings instrument that many banks offer. It usually gives a higher interest rate, but you cannot access your investment for a specified length of ime. Suppose you deposit $3000 in a CD paying 6% interest, compounded monthly. How much will you have in the accbunt after 20 years? In this example, Pa-$3000 1=0.06 -12 the initial deposit 6% annual rate 12 months in 1 year since we're looking for how much well have after 20 N=20 years 0.06 So P 3000 1+ 12 3D%2993061(round your answer to the nearest penny) %3D Let us compare the amount of money earned from compounding against the amount you would carn from simple interest Yars Simple Interest 6% compounded (S15 per month)monthly 0.5% each month 33900 $4800 $5700 $4046 55…

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