You have inherited money from a distant relative, and it will arrive in 4 separate deposits over the course of 6 years as shown below. At the same time, you're receiving an annual salary of $50,000 (an annuity). At the end of the 6th year, how much money will be in your account, if your account has an annual interest rate of 8%? Year 1: $5,000 Year 2:0 Year 3: $6,400 Year 4: $8,000 Year 5:0 Year 6: $7,500 Typed numeric answer will be automatically saved.

You have inherited money from a distant relative, and it will arrive in 4 separate deposits over the course of 6 years as shown below. At the same time, you're receiving an annual salary of $50,000 (an annuity). At the end of the 6th year, how much money will be in your account, if your account has an annual interest rate of 8%? Year 1: $5,000 Year 2:0 Year 3: $6,400 Year 4: $8,000 Year 5:0 Year 6: $7,500 Typed numeric answer will be automatically saved.

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

See similar textbooks

Similar questions

When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a fixed interest rate of 15 percent. On your 18th birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition. How much money can they expect to withdraw? What is the present value of your end-of-year investment of $1,000 per year, with the first cash flow received three years from today and the last one 10 years from today? Use a discount rate of 12 percent Consider the stock of BIC Company has an annual dividend of $ 3 in 2020. The dividend is expected to grow at a constant rate of 7 percent permanently in 2023. The market requires a 14 percent return on the company. What is the current price of a share of the stock? You have just found the perfect home. However, in order to buy it, you will need to take out a TRL 450,000, 10-year mortgage at an annual rate of 15,50 percent. What will your monthly mortgage payments be? ABC…
You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest, which you will use to establish an annuity that will pay for your vacations for the next ten years. How much can you withdraw from the account in each of the ten years? $8,044.56 $7,826.10 $6,241.51 $8,311.18
If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year 4. Assuming that the interest is paid once per year, the effective annual rate of the invent is a. 12.2 b. 12.9 c. 11.5 d. 13.6 E. 10.8
How much will you have in your bank account after 4 years ifyou deposit $5,000 of your high-school graduation gifts into an account that pays a fixed interest rate of 5% per year?
You plan on making deposits of $1,000 into a savings account at the end of every year in college. If you graduate in 5 years and the account earns an annual rate of 8%, how much will you have at graduation? PLEASE BREAK IT DOWN
In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 5 and the payments will last for 34 years. You plan to deposit the money you receive every month into a special account right away that pays 6.60% APR with quarterly compounding. Today the account mentioned above has a balance of $14000. Assuming that interest rate will stay constant, what will be the account balance at the end of the 15th year?
Your uncle has agreed to deposit $3000 in your brokerage account at the beginning today for five years. You estimate that you can earn 9% per year on your investments. How much will you have in your account at the beginning of year 4?
You would like to have $6,000.00 in 11 years for a special vacation following graduation by making deposits at the end of each quarter in an annuity that pays 5.7% compounded quarterly. How much money should you deposit at the end of every quarter? calculations. Round to the nearest penny and use rounded values for all future How much of the $6,000.00 comes from deposits and how much comes from interest? of the $6,000.00 comes from your deposits and $ comes from interest.
Your mother has asked you to help her with an investment. She has $6,000 to invest today for 3 years. You've identified a CD at a bank that pays a nominal rate of interest of 5.08%, with interest paid quarterly. What will be the value of this investment 3 years from now?
Abby Ellen wants to attend Ithaca College. She will need $75,000 6 years from today. Assume Abby's bank pays 6% interest compounded semi-annually. What must Abby deposit today to have $75,000 in 6 years?
A couple wants to set up a college savings account for their grandchild. If the account earns 4.4% interest compounded quarterly, how much should they invest today so that the account will be worth $50,000 in 18 years? Round your final answer to two decimal places.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS