B7 Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the end ofeach month he deposits $350 into the account. How much money will he have in the account at the end of15 years.The final amount is $Round to the nearest cent. Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each monthhe will deposit $460 into the account.What will the value of the account be at the end of 30 years?How much interest will he have earned?Give your answers to the nearest cent.,

Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the end of each month he deposits $350 into the account. How much money will he have in the account at the end of 15 years. The final amount is $ Round to the nearest cent.

Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the end of each month he deposits $350 into the account. How much money will he have in the account at the end of 15 years. The final amount is $ Round to the nearest cent.

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the end of
each month he deposits $350 into the account. How much money will he have in the account at the end of
15 years.
The final amount is $
Round to the nearest cent.

Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each month
he will deposit $460 into the account.
What will the value of the account be at the end of 30 years?
How much interest will he have earned?
Give your answers to the nearest cent.,

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