ZuoTi.Pro
Question

Problem 5.02 (Excel Video) Ted Rogers is investing $7,500 in a bank CD that pays a 6 percent annual interest. How much will t

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution:

Present Value = $ 7,500

Amount invested today = $ 7,500

Return expected ( I ) = 6%

Duration of investment (n) = 5 years

Value of investment after 5 years = FV5

FV5 = PV * (1+I)^n

= $7,500 * (1 + 0.06)^5

=$10,036.691832

Value of CD at the end of 5th year = $10,036.69

0 0
Add a comment
Know the answer?
Add Answer to:
Problem 5.02 (Excel Video) Ted Rogers is investing $7,500 in a bank CD that pays a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Problem 5.02 (Excel Video) Donald Martin is investing $9,500 in a bank CD that pays a...

    Problem 5.02 (Excel Video) Donald Martin is investing $9,500 in a bank CD that pays a 10 percent annual interest. How much will the CD be worth at the end of five years? (Do not round intermediate calculations and round your final answer to the nearest penny.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement...

  • Problem 5.1 Ted Rogers is investing $12,500 in a bank CD that pays a 8 percent...

    Problem 5.1 Ted Rogers is investing $12,500 in a bank CD that pays a 8 percent annual interest. How much will the CD be worth at the end of five years? (1 answer to the nearest penny.) Value of CD after 5 Years Click if you would like to Show Work for this question: Oren Show Work LINK TO TEXT VIDEO: CONCEPTS IN ACTION tion with available attempts.

  • Kenneth Clark is investing $10,500 in a bank CD that pays a 8 percent annual interest....

    Kenneth Clark is investing $10,500 in a bank CD that pays a 8 percent annual interest. How much will the CD be worth at the end of five years? (Do not round intermediate calculations and round your final answer to the nearest penny.)

  • Parrino, Fundamentals of Corporate Finance, 4e Help I System Announcements Grace Period: 9 days left |...

    Parrino, Fundamentals of Corporate Finance, 4e Help I System Announcements Grace Period: 9 days left | Register PRINTER VERSION BACK NEXT Problem 5.02 (Excel Video) [ Your answer is incorrect. Try again. Thomas Taylor is investing $12,500 in a bank CD that pays a 5 percent annual interest. How much will the CD be worth at the end of five years? (Do not round intermediate calculations and round your final answer to the nearest penny.) Excel Template (Note: This template...

  • [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck Tomkovick is planning to invest $3,000 today in a mutual fu...

    [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck Tomkovick is planning to invest $3,000 today in a mutual fund that will provide a return of 8 percent each year. What will be the value of the investment in 10 years? 2. Future value: Ted Rogers is investing $7,00 in a bank CD that pays a 6 percent annual interest. How much will the CD be worth at the end of five years? 3. Future value: Your...

  • Answer all these questions. Thank you! 1. 2. 3. 4. 5. Problem 5.12 (Excel Video) Karen...

    Answer all these questions. Thank you! 1. 2. 3. 4. 5. Problem 5.12 (Excel Video) Karen White is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $29,000 for the down payment. If Karen can invest in a fund that pays 9.40 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (If...

  • Problem 5.03 Your aunt is planning to invest in a bank CD that will pay 6.5...

    Problem 5.03 Your aunt is planning to invest in a bank CD that will pay 6.5 percent interest semiannually. If she has $6,500 to invest, how much will she have at the end of four years? (Round your answer to the nearest penny.) Value of investment after 4 years

  • Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of...

    Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of 12 years. If the annual interest rate is 6.40 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment= ? 2)Your brother has asked you for a loan...

  • First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City...

    First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $65,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)    Your coin collection contains 45 1952 silver dollars. If your grandparents purchased them...

  • Your aunt is planning to invest in a bank CD that will pay 5.5 percent interest...

    Your aunt is planning to invest in a bank CD that will pay 5.5 percent interest semiannually. If she has $11,000 to invest, how much will she have at the end of four years? (Round your answer to the nearest penny.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT