17. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3?

17. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3?

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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Question

17. You deposit $8,000 in a bank account today. You make another deposit
of $14,000 into the account in year one and you make a third deposit of
$10,000 in year two. The bank pays interest at 8 percent compounded
annually. How much will you have in your account at the end of year 3? *
O a) $37,207
b) $35,207
O c) $39,207
O d) $40,502
e) None of the above

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Every year on 1st January between 2020 and 2049 inclusive (so 30 times), you deposit $1,000 into a bank account. Each year, the bank account returns a rate of interest equal to that year less 2000. (So in 2020, the account earns 20%, in 2021, 21% etc). How much will you have in the bank account on 31st December 2049, just after that year's interest has been paid? A $35,734,347.81 B $35,734,347.82 C $35,734,347.83 D $35,734,347.84
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