Your bank pays 8.00 percent annual interest compounded semiannually on your savings account. You don't expect to add to thecurrent balance of $2,200 over the next four years. How much money can you expect to have at the end of this period? (If you solve thisproblem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)Value of investment after 4 years$

Step 1: Given Value for Calculation Compound = Semiannually = 2Interest rate = r = 8 / 2 = 4%Present…

Answered: Your bank pays 8.00 percent annual…

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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I need help answering these 4 questions 1. How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. what annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. A deposit of $270 earns the following interest rates: 8 percent in the first year. 6 percent in the second year. 5 percent in the third year. What would be the third year future value? (Round your answer to 2 decimal places.)
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