you want to go to Europe 4 years from now, and you can save $3300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will retum 8.5% per year. Under these conditions, how much would you have in your account by the time you are ready for your trip? O a. $12, 344.53. b. $13,799.76 O c. $15, 765.34 O d. $11,235.11. e. $14,980.40

you want to go to Europe 4 years from now, and you can save $3300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will retum 8.5% per year. Under these conditions, how much would you have in your account by the time you are ready for your trip? O a. $12, 344.53. b. $13,799.76 O c. $15, 765.34 O d. $11,235.11. e. $14,980.40

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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K You have just received a windfall from an investment you made in a friend's business. She will be paying you $41,444 at the end of this year, $82,888 at the end of next year, and $124,332 at the end of the year after that (three years from today). The interest rate is 3.8% per year a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
You are required to two choose from two actions: A1: deposit K1 000 000 in the bank for 1 year at 7 % interest A2: invest K 1 000 000 for 1 year with 50% probability of having K2 500 000 at the end of the year, and 50% probability of losing all the K 1 000 000. Which would you choose and why?
How much should you deposit at the end of each month into an investment account that pays 8.5% compounded monthly to have $5 million when you retire in 38 years? How much of the $5 million comes from earnings? Click the icon to view some finance formulas. In order to have $5 million in 38 years, you should deposit $ (Round up to the nearest dollar.) each month. $of the $5 million comes from interest. (Use the answer from the previous step. Round to the nearest dollar as needed.)
You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment? 4.067% 4.188% 3.926% 4.152% Suppose you decide to deposit $25,000 in a savings account that pays a nominal rate of 4%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after six months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $25,505.01 $26,015.11 $26,397.69 $24,739.86
You want to buy a new ski boat 2 years from now, and you plan to save $7,300 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now? a. $14,979.60 b. $23, 058.54 c. $8,122.81 d. $15,758.54 e. $15,359.20
i need the answer quickly
You are 19 years old today. You want to have $381,507.06 in an investment account when you are 60 years old. You will start with an initial deposit in one year from now and grow it by 3% per year for a total of 15 investments. How much is the amount of that initial deposit? Assume an interest rate (a.k.a. return on your investment of 6%. Use the $ sign and a comma and round to the nearest thousand...(e.g. $8,000 would be the form of a correct answer). Hint..the correct answer should be very close to a multiple of $1,000. Previous Page Next Page Page 16 of 19
You want to save P85,000 for future family vacation (three years from now). If the bank pays 8.5% compounded monthly, how much will you need to initially invest to reach your vacation goal? A. P19,072.86 B. P45,927.14 C. P65,927.14 D. P87,340.16
K (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 6 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 6 percent on this deposit.) c. At the end of five years, you will receive $15,000 and deposit this in the bank toward your goal of $54,000 at the end of year 16. In addition to the lump-sum deposit, how much must you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn 6 percent on your deposits.) a. How much must you deposit annually to accumulate this amount? $ 2103.42 (Round to the nearest cent.) b. If you decide to make a large lump-sum deposit today instead of…
How much should you invest each month in order to have $500,000 if your rate of return is 3.9% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $500,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?
suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4338.96 O b. 554297.17 O c. None of the options O d. 5653.57 O e. 5134.98
You expect to save $1,000 at the end of every year for 8 years. During the first 3 years, your savings will earn 4%, compounded semi-annually. During the last 5 years, your savings will earn 5%, compounded monthly. How much money will you have after 8 years? Round to the nearest dollar. Select one: a. $9,412 b. $9,546 c. $8,661 d. $9,876

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