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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10. 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 6% compounded quarterly? The amount of the quarterly deposits A should be $ 0 6% Compounded quarterly 1 1 " (Round to the nearest dollar.) 2 1 ; 3 $1,500 4 5 1: A (Deposit) Quarters 7 6 7 . $2,300 18
You would like to earn simple-interest $1 800 from a term deposit at 4.25% in 8 months. Calculate the principal you need to invest. Round your answer to the nearest dollar. O a. $72 605 O b. $63 529 O c. $77 775 O d. $67 818 O e. $56 471
rch LG2 PS-4) Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit perk if the interest is compounded annually at the rate specified. AAVA** C D Single cash flow $ 200 4,500 10,000 25,000 37,000 40,000 Interest rate O E 8 9 10 11 Deposit period (years) 20 7 10 в гро
You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7%interest. If (P/G, 7%, 3)=2.506 and (A/P, 7%, 3)=.3811 what is the present value (now) ofthese deposits.
8. 6. 10 0. EOY 3. 20 21 22 23 24 26 27 28 29 30 CF $300 ? A deposit was made at the EOY 2021, as shown in the CF table above. Five equal withdrawals are to be made, starting at the EOY 26, that will deplete the account. If the interest rate is 6% compounded annually, what is the amount of these future withdrawals? 25
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m m r $150 4.3% $125 7.4% $475 3.3% $500 3.7% $225 6.1% compounding time future in frequency years annually semiannually quarterly monthly weekly 8 7 10 8 value $ LA $ +A $ interest earned $ LA 111 $ $ $
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 3.5% compounded monthly Click the icon to view some finance formulas. a. The periodic deposit is $. (Do not round until the final answer. Then round up to the nearest dollar as needed.) Formulas b. S of the $220,000 comes from deposits and S comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.) A= In the provided formulas, P is the deposit made at the end of each compounding period, r is the annual interest rate of the annuity in decimal form, n is the number of compounding periods per year, and A is the value of the annuity after t years. P[(1+r)²-1] T Time 10 years A= nt P= Financial Goal $220,000 响 nt [(¹-3) - X SEX
I7 The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate can you explain how we get the value m=2 in the nominal annual interest rate i=r/m
If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18,000? A. $270 B. $120,000 C. $540 D. $600,000 E. $1,200,000
1. Citibank pays 9% ordinary simple interest on a 30-day time deposit. How much money will the depositor have at the end of the 30-day period if he or she deposits P1,500.00?
If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18 000? Question 9 options: A) $270 B) $1 200 000 C) $600 000 D) $120 000 E) $540
8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded cantinuously. Find the balance after 3 yeats AP8754.31 B. P 4857.31 C.P 7584 31

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