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6. Determine how much money an investment of S300 will generate in the following situations. For...
The following situations require the application of the time value of money: Use the appropriate present...
The following situations require the application of the time value of money: Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. On January 1, 2017, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2022, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. Future Value a. Annual...
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compou...
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compounding? c) quarterly compounding? d) daily compounding?
Question 6: (4 points) You make a one-off initial investment of $3,500 in a bank account...
Question 6: (4 points) You make a one-off initial investment of $3,500 in a bank account that pays 4% interest per year, with interest compounded 2 times per year. What is the value of the investment after 3 years to the nearest cent? Value after 3 years = $_ (to the nearest cent) How long will it take for the value of the investment to double (in years)? Duration for value of investment to double = (in years, to 2...
You receive $4,000 from your aunt when you turn 21 and you immediately invest the money...
You receive $4,000 from your
aunt when you turn 21 and you immediately invest the money in a
saving account. The account earns 12% annual rate, with continuous
compounding. You get your first job after 5 years. a. Determine the
accumulated saving in this account at the end of 5 years. b. You
want to retire from work in 20 years. If you deposit $100 into your
account every month for the first 10 years, and $200 every month
for...
Christine O'Brien, who is self-employed, wants to investa. Choose the investment which will earn the most $80,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers...
Christine O'Brien, who is self-employed, wants to investa. Choose the investment which will earn the most $80,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.75% compounded continuously. a. Which investment will earn the most interest in 5 years? b. How much more wil the better plan earn? C. What is the effective rate in each case? interest below O compounded continuously O compounded quarterly b. The difference is $ d. If Ms. O'Brien chooses the...
suructions You deposit 84,900 in an account earning 3% interest compounded semiannually. How much will you...
suructions You deposit 84,900 in an account earning 3% interest compounded semiannually. How much will you have in the account after 7 years? (Note: Use n = 12 for monthly compounding, n = 4 for quarterly compounding, n = 2 for semiannual compounding, and n = 1 for annual compounding.) $ Points possible: 4 This is attempt 1 of 2.
154. How much money must be invested in an account that pays 6% per year in-...
154. How much money must be invested in an account that pays 6% per year in- terest to be worth $20,000 at the end of 8 years if (forgetting leap years and making "convenient" assumptions): a. Interest is compounded annually? onomani a b. Interest is compounded semi-annually? c. Interest is compounded quarterly? Wo b d. Interest is compounded monthly? no wo o e. Interest is compounded weekly? f. Interest is compounded daily? g. Interest is compounded hourly? h. Interest is...
Determine how much money would be in a savings account that started with a deposit of...
Determine how much money would be in a savings account that started with a deposit of $2000 in year 1 and each succeeding amount increasing by 10% per year, use an interest rate of 8% per year and a 20 year period 4. An investment of $6000 increased to $10,000 over a 5-year period. What was the annual rate of return on the investment? 5.
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly...
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly compounding of interest. What is your effective annual interest rate? 10. You are offered an annuity that will pay $15,000 per year for 20 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 3%, what is the annuity worth to you today? 11. If you deposit $6,500 per year (each deposit is made at...
Answers must be typewritten. a. Determine how much money (to the nearest dollar),that you must in...
Answers must be typewritten. a. Determine how much money (to the nearest dollar),that you must invest today, at 7% per annum,compounded monthly,in order to obtain 1 million dollars in 30 years. b. Determine how long it will take (to the nearest year),for $25,000, invested at an annual rate of interest of 10% and compounded quarterly,to grow to $200,000.
Question 6: (4 points) You make a one-off initial investment of $3,500 in a bank account that pays 4% interest per year, with interest compounded 2 times per year. What is the value of the investment after 3 years to the nearest cent? Value after 3 years = $_ (to the nearest cent) How long will it take for the value of the investment to double (in years)? Duration for value of investment to double = (in years, to 2...
You receive $4,000 from your
aunt when you turn 21 and you immediately invest the money in a
saving account. The account earns 12% annual rate, with continuous
compounding. You get your first job after 5 years. a. Determine the
accumulated saving in this account at the end of 5 years. b. You
want to retire from work in 20 years. If you deposit $100 into your
account every month for the first 10 years, and $200 every month
for...
Christine O'Brien, who is self-employed, wants to investa. Choose the investment which will earn the most $80,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.75% compounded continuously. a. Which investment will earn the most interest in 5 years? b. How much more wil the better plan earn? C. What is the effective rate in each case? interest below O compounded continuously O compounded quarterly b. The difference is $ d. If Ms. O'Brien chooses the...
suructions You deposit 84,900 in an account earning 3% interest compounded semiannually. How much will you have in the account after 7 years? (Note: Use n = 12 for monthly compounding, n = 4 for quarterly compounding, n = 2 for semiannual compounding, and n = 1 for annual compounding.) $ Points possible: 4 This is attempt 1 of 2.
154. How much money must be invested in an account that pays 6% per year in- terest to be worth $20,000 at the end of 8 years if (forgetting leap years and making "convenient" assumptions): a. Interest is compounded annually? onomani a b. Interest is compounded semi-annually? c. Interest is compounded quarterly? Wo b d. Interest is compounded monthly? no wo o e. Interest is compounded weekly? f. Interest is compounded daily? g. Interest is compounded hourly? h. Interest is...
Determine how much money would be in a savings account that started with a deposit of $2000 in year 1 and each succeeding amount increasing by 10% per year, use an interest rate of 8% per year and a 20 year period 4. An investment of $6000 increased to $10,000 over a 5-year period. What was the annual rate of return on the investment? 5.
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