Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Account: offers 10% annual compound interest for 20 years
Lowest amount money that needs to be deposit, to withdraw 50,000 at the end of each year for 20 years
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- Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per yeararrow_forwardPrepare anamortization schedule for a $50,000 loan that pays10% interest annually for five yearsassuming the bank requires $13,189.87yearly payment.arrow_forwardSuppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79arrow_forward
- Deposits of GHS100 are made every month for 5 years into an account crediting interest at a nominal rate of 9% convertible monthly. Starting one month after the last deposit, monthly withdrawals of X are made for 10 years, exhausting the account. Determine X.arrow_forwardFor 20-year, $100,000 loan at 4.5% APR what portion of the monthly payment in Month 3 of the amortization schedule goes to interest?arrow_forwardStarting in 5 years and 6 months you want to be able to withdraw $950 every three months for 3 years and 3 months. You want to deposit a single amount immediately and then let it grow at a rate of 7.24% compounded quarterly. How much interest did you earn during the entire period of time? Select one: A. $4888.47 B. $2099.47 C. $4589.47arrow_forward
- Calculate compound interest and effective rateSuppose $ 2,000 is deposited into a savings and loan account that pays 7.5% interest compounded semi-annually. Use compound interest to calculate the following:a. How much money will you have saved after 2 years?b. How much will be owed after 2 years?arrow_forwardMORTGAGE: 30-year, 5.25% Interest Rate, $155,000 Loan Amount. How much principal is paid the first year?arrow_forward
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