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%.
Suppose you deposit $1,181.00 into an account 5.00 years from today. Exactly 18.00 years from today the account is worth $1,800.00. What was the account's interest rate?
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.
1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2. 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.) 3. 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.) 4. 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.) 5. 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…
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Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $130 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest cent.)
Suppose that your bank pays 6% interest, compounded quarterly. Find out how much should be deposited now to yield an annuity payment of 1,500 at the end of each three months, for 3 years. (Round your answer to the nearest cent)
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Assume Bill Jones invested $ 2,160.57 into an account exactly one year ago. The account has an interest rate of 5.9 % p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)? (Round your answer to the nearest cent and record your answer without a dollar sign and without commas. For example, record $1,356.8382 as 1356.84).
PLEASE ANSWER IT ASAP FOR AN UPVOTE. I BADLY NEED IT. Tiana invested in an annuity with an initial investment of P40,000 followed by deposit of P800 every month for 6 years. The interest rate was 4.25% p.a. compounded monthly. What is the future value of this investment?

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