In the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.A=P[1+-n²ntP=Ar(₁ + -)nntA = PertY=1 +n- 1 You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2years, the interest rate is increased to 7.52% compounded quarterly. What will be the value ofthe account after a total of 4 years?i Click the icon to view some finance formulas.The value of the account will be $(Round to the nearest dollar as needed.)

Initial deposit (P) = $2000 Semiannual interest rate for first 2 years (r1) = 0.035 (i.e. 0.07 / 2)…

You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2 years, the interest rate is increased to 7.52% compounded quarterly. What will be the value of the account after a total of 4 years? Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar as needed.)

You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2 years, the interest rate is increased to 7.52% compounded quarterly. What will be the value of the account after a total of 4 years? Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar 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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if you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in six years. what is the implied rate that the back is paying?
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You deposit $650 in an account paying 7.8% simple interest. Find the future value of the investment after 3 years. (Round your answer to two decimal places.)
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You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is, twice a year) for the next 11 years. How much money should you invest now into an account earning 4.1% interest per year, compounded every 6 months, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer correctly to 2 decimal places. The amount to invest now is ______ dollars.
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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 i Click the icon to view some finance formulas. Time 14 years Financial Goal $180,000 a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $180,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
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If your bank pays you 1.5% interest and you deposit $700 today, what will be your balance in seven years? The bank balance will be $ ______.(Round to the nearest cent.)
Suppose you found a CD that pays 2.5% interest compounded monthly for 3 years. If you deposit $11,000 now, how much will you have in the account in 3 years? (Round to the nearest cent.) What was the interest earned? (Round to the nearest cent.) Now suppose that you would like to have $20,000 in the account in 3 years. How much would you need to deposit now? (Round to the nearest cent.) $ Question Help: Video 1 Video 2 Submit Question Q Search

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