За. Sophia pays $200 into a bank account at the end of each month. The annual interest paid on money in the account is 3.1% which is compounded monthly. Find the value of her investment after a period of 5 years. B 12,074.42 3b. The average rate of inflation per year over the 5 years was 2%. Find an approximation for the real interest rate for the money invested in the account.

За. Sophia pays $200 into a bank account at the end of each month. The annual interest paid on money in the account is 3.1% which is compounded monthly. Find the value of her investment after a period of 5 years. B 12,074.42 3b. The average rate of inflation per year over the 5 years was 2%. Find an approximation for the real interest rate for the money invested in the account.

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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3. Grigor's bank makes payments continuously at a rate of 50,000 a year. The payments are made between 7 and 11 years. Find the current value of these payments at time 3 using an annual rate of discount of 6.25%.
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You deposited $150 the first year in an account that earns 12% annual interest. You also deposited $300 and $350 the second and fourth year respectively in that account with the same interest rate. All the deposits happened at the beginning of the years. How much money do get in that account at the end of the fourth year? Check your answer with interest table.
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Val regularly deposits a certain amount K in a bank account which credits com-pound interest: If Val intends to pay K at the beginning of each quarter for 4years, how much should be this periodic payment if the sum of present valuesof all these payments is 15,000 at a nominal interest rate of 8% compoundedquarterly?
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The Little Red-Haired Girl makes quarterly deposits into an account paying an effective interest rate of 3.5% per quarter. The first depost is $4200, and each subsequent deposit is $200 SMALLER than the previous one. How much is in the account immediately after the 12th depost? Balance $
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1. Mr. Pat Met invested in a bank having an annual payment of Php 100,000 for three years at a 4% annual interest rate. a. How much is the future value? b. Find the total interest earned on the investment.

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