you put $200 per month in an investment plan that pays an APR of 2.5% How many will you have after 28 years? Compare this amount to the total deposits made over the time period. After 28 years the investment plan will contain

you put $200 per month in an investment plan that pays an APR of 2.5% How many will you have after 28 years? Compare this amount to the total deposits made over the time period. After 28 years the investment plan will contain

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

Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective annual return. How many years will it take for your account to grow to $20,000?
Suppose you invest $160 a month for 6 years into an account earning 6% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 29 years. How much will you have in the end?
Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of 3.01% compounded monthly. What is the account balance at the end of the 14 years? Round your answer to the nearest cent. How much of the money in the account at the end of the 14 years is your personal investment, meaning that the money came directly from you? How much of the money in the account at the end of the 14 years is interest? What percentage of the account balance after 14 years is interest? Hint: The percentage of interest in the account is equal to the amount of the account ballance that is interest divided by the base account balance. Multiply that result by 100 to get a percentage. Round your percentage to one decimal place.
A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 9% per year. What is the investment's future value? Remember, the deposits are made at the beginning of each year (annuity due). A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 9% per year. What is the investment's future value? Remember, the deposits are made at the beginning of each year (annuity due). $1,495.41 $1,459.98 $1,425.22 $1,391.12 $ 1,357.69
An investment you have will mature in 6 months and will give you $13,000 at that time if your initial deposit is $12,000. What is the nominal annual interest rate and what is the effective interest rate?
You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?
You invest $9000 in an account that pays simple interest of 2% for 13 years. What is the interest you will have at the end of the indicated period?
An investment offers $2,500 per year for 8 years, with the first payment occurring one year from now. If the required return is 12%, what is the value of the investment?
An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at the end of each year for years 7 through 10. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 15 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 15 percent required rate of return?$
An investment offers $1,000 per month forever. The first payment will occur three months from today. What is the present value of this investment if the annual percentage rate is 24 percent?
Using the TVM calculator, compare the following if the investment pays 7%/a compound annually and payments are made until age 65. Calculate the future value of each investment and the total amount paid in. which would you choose? a) depositing $1500 every year starting at age 20. b) depositing $4500 every year starting at age 50.
An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, what is it worth today? 45 Mo

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