You want to buy a nice road bike. You place $2,200 at the end of each year in an investment account that earns 8% compounded annually. How much will be in the account after (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1. PV of $1, FVA of $1, and PVA of $1) a. b. C Annuity Annual Interest Payment Rate Compounded $ 2,200 2.200 2,200 5% Annually 5% Annually 5% Annually Period Invested 2 years 3 years 4 years Future Value of Annuity

You want to buy a nice road bike. You place $2,200 at the end of each year in an investment account that earns 8% compounded annually. How much will be in the account after (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1. PV of $1, FVA of $1, and PVA of $1) a. b. C Annuity Annual Interest Payment Rate Compounded $ 2,200 2.200 2,200 5% Annually 5% Annually 5% Annually Period Invested 2 years 3 years 4 years Future Value of Annuity

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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Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra $⁢28,000 over the next 33 years. What amount must be deposited quarterly into an account that earns 4.7% interest, compounded quarterly, in order to reach your goal? Round your answer to the nearest cent, if necessary.
Give complete solutions and draw a cashflow diagram. Provide an amortization schedule 1. You have a car loan of $15,000 with an annual interest rate of 8%. The loan term is 3 years. Calculate the outstanding balance after 2 years of making monthly payments.
If you invest $9,400 per period for the following number of periods, how much would you have received at the end? ( Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 12 years at 6 percent. Future value $ b. 18 years at 8 percent. Future value $ c. 25 periods at 16 percent. Future value $
Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25
You just deposited $9,500 in an investment account and will deposit $5000 more four years from now. What is the built-in functions on a spreadsheet to determine how much will be in the account 11 years from now if the rate of return is 10% per year? The built-in function is =FV (10%, 11,,9500) + FV(10%,7, ,5000) and it displays $
How much money should be deposited today in an account that earns 4.5% compounded monthly so that it will accumulate to $11,000 in 4 years? i Click the icon to view some finance formulas. The amount of money that should be deposited is $. (Round up to the nearest cent as needed.)
You have an investment opportunity that promises to pay you $18,000 in four years. You could earn a 5% annual return investing elsewhere. What is the maximum amount you would be willing to invest in this opportunity? Note: Use tables, Excel, or a financial calculator. Round your final answer to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63
You wish to purchase some equipment for a new business venture. You plan to save $35,000 per year. You will make 5 deposits in an account that pays 8.25%. Required: Determine how much you will have 5 years from today? Please show all working.
Suppose you decide to save P3,000 per month for the next three years. If you invest all of these savings in an account which will pay you 5% compounded monthly, determine (a) the total amount in the account after 3 years and (b) the amount of interest earned.Note: Include cash flow diagram if possible
You plan to save Php7,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.2% interest. Under these assumptions, how much will you have 3 years from today?SHOW MANUAL SOLVING
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)

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