plz solve A woman deposits $12,000 at the end of each year for 15 years in an investment account with a guaranteed interest rate of 7% compoundedannually.(a) Find the value in the account at the end of the 15 years.(b) Her sister works for an investment firm that pays 6% compounded annually. If the woman deposits money with this firm instead of the one in part(a), how much will she have in her account at the end of 15 years?(c) How much would she lose or gain over 15 years by investing in her sister's firm?....(a) The woman's deposits form anV because the deposits are made at theV of each period. Therefore, the formulashould be used.

The question is based on the concept for calculation of the future value by use of compounding…

Answered: A woman deposits $12,000 at the end of…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of 50 (1 payment at the end of each of the next 4 years) plus an extra payment of 1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of 900 each. Your money is now invested in a bank that pays an 8% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
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Jessica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 5% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)
Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one year later and 4,000 USD the following year. The deposit account is valued at the annual fixed effective interest rate of x%. Calculate the interest rate (x), if the value of the money in his account at the time Suat deposits 4,000 USD is 22,000 USD? Thanks
Abigail received a 15 year loan of $280,000 to purchase a house. The interest rate on the loan was 5.80% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 2? c. By how much will the amortization period shorten if Abigail makes an extra payment of $30,000 at the end of year 2?
Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9 years, she leaves the money, without making additional deposits, in the account for another 18 years. How much will she have in the end and what is the total amount of her deposits?Rocio will have_____ in her account at the end of 27 years______ and is the total amount of deposits she made. HintLucille didn't invest anything for the first 9 years, then deposited $170.00 a month for 18 years into an account earning 6% compounded monthly. How much will she have in the end and what is the total amount of her deposits?Lucille will have______ in her account at the end of 27 years and ________is the total amount of deposits she made.
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