37. You can earn 8 percent interest, compounded monthly. How much must you deposit today to...
37. You can earn 8 percent interest, compounded monthly. How much must you deposit today to withdraw $10,000 in 6 years?
38. If you invest $10,000 in an account expected to earn 5.0% compounded annually, how long do you need to invest for the account to have grown to $40,000?
42. A bank is offering a CD which it will sell to its customers for $10,000 paying them back $14,000 in 4 years. What annual rate of return will a customer make if they buy this CD?
43. Patrick wishes to invest $30,000 today for his grandson, hoping that in 20 years this will have grown to $100,000. What rate of return will Patrick need to achieve this goal?
Homework Answers
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37. You can earn 8 percent interest, compounded monthly. How
much must you deposit today to...
13. How much must you deposit in an account today so that you have a balance...
13. How much must you deposit in an account today so that you have a balance of $ 10,974 at the end of 12 years if interest on the account is 9 % p.a., but with quarterly compounding? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign). 14. The Milken Company is offering you an investment that promises you $10,000 at the end of 8 years if you invest $ 7,267 today....
How much must you deposit today if you can earn 2.40% annual rate of interest (with...
How much must you deposit today if you can earn 2.40% annual rate of interest (with monthly compounding) in order to have $42,000 seven years from now? Please show ALL work with finance formulas.
If you deposit $10,000 today in an account that earns 14.5% compounded...
If you deposit $10,000 today in an account that earns 14.5% compounded annually, how much will the account be worth in 45 years? You have the opportunity to purchase an investment that will pay $1,625,000 at the end of 40 years. If your required rate of return on this investment is 13.2%, what is the maximum amount you should be willing to pay for it? Your grandparents deposited a $10,000 birthday check for you when you were...
How much should you invest each month in order to have $300,000 if your rate of...
How much should you invest each month in order to have $300,000 if your rate of return is 7% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How much should you invest each month in order to have $300,000 if you want to achieve your goal in 20 years? $ If you deposit the amount you need to achieve your goal in 20 years, how much will your...
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How...
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $ 2. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b)...
How much do you have to deposit today so that you can withdraw $10,000 a year...
How much do you have to deposit today so that you can withdraw $10,000 a year from years 11 through 13, $15,000 a year from years 14-20, plus an additional amount of $20,000 in year 20. Assume an interest rate of 5% compounded annually.
You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annu...
You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annual rate of 5.5 percent for 14 years. How much will you have in your account in 25 years? O $99.148.20 O $114.250.46 O $105,530.26 O $49.870.37 O $89.871.01 You are going to deposit $2,700 in an account that pays .33 percent interest compounded monthly. How much will you have in 7 years? $3,572.59 O $3,564.40 $3,560.84...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years? 3. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last...
If you invest $11,277 today at an interest rate of 4.27 percent, compounded daily, how much...
If you invest $11,277 today at an interest rate of 4.27 percent, compounded daily, how much money will you have in your savings account in 12 years? Round the answer to two decimal places.
If you invest $5,550 today at an interest rate of 6.75 percent, compounded daily, how much...
If you invest $5,550 today at an interest rate of 6.75 percent, compounded daily, how much money will you have in your savings account in 7 years? Round the answer to two decimal places.
You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annual rate of 5.5 percent for 14 years. How much will you have in your account in 25 years? O $99.148.20 O $114.250.46 O $105,530.26 O $49.870.37 O $89.871.01 You are going to deposit $2,700 in an account that pays .33 percent interest compounded monthly. How much will you have in 7 years? $3,572.59 O $3,564.40 $3,560.84...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years? 3. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last...
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