Diana invested $1,025 at the end of every month into an investment fund that was earning interest at 5.50% compounded monthly. He stopped making regular deposits at the end of 8 years when the interest rate changed to 5.75% compounded quarterly. However, he let the money grow in this investment fund for the next 3 years. a. Calculate the accumulated balance in his investment fund at the end of 8 years.

Diana invested $1,025 at the end of every month into an investment fund that was earning interest at 5.50% compounded monthly. He stopped making regular deposits at the end of 8 years when the interest rate changed to 5.75% compounded quarterly. However, he let the money grow in this investment fund for the next 3 years. a. Calculate the accumulated balance in his investment fund at the end of 8 years.

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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Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.
Leah invested $875 at the end of every month into an investment fund that was earning interest at 3.25% compounded monthly. He stopped making regular deposits at the end of 8 years when the interest rate changed to 3.50% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 8 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 12 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 12-year period. $0.00 Round to the nearest cent
Samantha invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 6.66% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. b. Calculate the accumulated balance in her investment fund at the end of 13 years. c. Calculate the total interest earned over the 13-year period.
Joel invested $1,025 at the end of every month into an investment fund that was earning interest at 4.75% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 5.00% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 13 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 13-year period. $0.00 Round to the nearest cent
Stephanie invested $500 at the end of every month in an investment fund that was earning interest at a rate of 4.26% compounded monthly. She stopped making regular deposits at the end of 7 years when the interest rate changed to 6.81% compounded quarterly. However, she let the money grow in this investment fund for the next 5 years. a. Calculate the accumulated balance in her investment fund at the end of 7 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 12 years. $0.00 Round to the nearest cent c. Calculate the total interest earned over the 12-year period. $0.00 Round to the nearest cent
Kayla contributed equal deposits at the end of every month for 4 years into an investment fund. She then decided to stop making payments and left the money in the fund to grow for another 4 years. The fund was earning 3.92% compounded monthly for the entire period and the accumulated amount at the end of the term was $60,000. a. Calculate the amount in the fund at the end of 4 years. Round to the nearest cent B. Calculate the size of the periodic deposits into the fund. Round to the nearest cent
Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 4.89% compounded monthly. a. What was the accumulated value of the fund at the end of year 16? b. What was the accumulated value of the fund at the end of year 20? c. What is the total amount of interest earned over the 20-year period? Please use algebra with detials
Emily contributed equal deposits at the end of every month for 3 years into an investment fund. She then decided to stop making payments and left the money in the fund to grow for another 2 years. The fund was earning 3.81% compounded monthly for the entire period and the accumulated amount at the end of the term was $80,000. a. Calculate the amount in the fund at the end of 3 years. Round to the nearest cent b. Calculate the size of the periodic deposits into the fund.
carlos Contributed equal deposit at the end of every month for four years into an investment fund he then decided to stop making payments and left the money in the fund to grow for another three years the fan was earning 4.81% compounded monthly for the entire period and then accumulated amount at the end of the term was $80,000 a. calculate the amount in the fund at the end of the four years. b. calculate the size of the periodic deposit into the fund.
Robert invested the profit of his business in an investment fund that was earning 3.25% compounded monthly. He began withdrawing $4,000 from this fund every 6 months, with the first withdrawal in 5 years. If the money in the fund lasted for the next 7 years, how much money did he initially invest in the fund?
Monica invested the profit of his business in an investment fund that was earning 2.75% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 5 years, how much money did he initially invest in the fund?
Vanessa deposited $16,000 into a fund at the beginning of every quarter for 11 years. She then stopped making deposits into the fund and allowed the investment to grow for 5 more years. The fund was growing at 3.85% compounded monthly. a. What was the accumulated value of the fund at the end of year 11? Round to the nearest cent b. What was the accumulated value of the fund at the end of year 16? Round to the nearest cent c. What is the total amount of interest earned over the 16-year period? Round to the nearest cent

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