Annalise will deposit into her investment account $4,500, $1,000, and $5,500 at the end of Years 1, 2, and 3, respectively. What will her account be worth at the end of the Year 3 if she earns an annual rate of 6.15 percent? O $11,632.02 O $10,381.25 O $9,725.12 O $11,526.50 ORGHORE are correct

Annalise will deposit into her investment account $4,500, $1,000, and $5,500 at the end of Years 1, 2, and 3, respectively. What will her account be worth at the end of the Year 3 if she earns an annual rate of 6.15 percent? O $11,632.02 O $10,381.25 O $9,725.12 O $11,526.50 ORGHORE are correct

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

See similar textbooks

Related questions

Q: An individual wants to deposit $112,100 into two investment accounts. One account pays 66% annual…

A: Note: Assuming, the question has repeated rate of return displayed, hence taking 6% and 15%, other…

Q: Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will…

A: The present value of the annuity due is the current worth of a cash flow series received/paid at the…

Q: Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon,…

A: Financial risk is defined as the risk, which have the different forms of risk that are associated…

Q: Derek will deposit $255.00 per year into an account starting today and ending in year 21.00. The…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: a. Luis is planning on retiring in 10 years. Luis has a mutual fund that is earning a return of 6%…

A: There are two methods of Interest: One is Simple Interest and second is Compound Interest. Simple…

Q: Abdullah is looking to invest for the next three years. He is looking to invest OMR 7500 today in a…

A: Given: Present value = OMR 7,500 Interest annually = 5.75% Years = 3

Q: Ms. Lun is earning P20,000 per month. She plans to invest in an insurance company an amount…

A: Monthly Earning of Ms. Lun P20,000 Annual Earning of Ms. Lun (P20000 * 12) P2,40,000 Amount…

Q: James deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Annuity refers to a stream of cash flows that is usually fixed and constant. The cash flows occur at…

Q: Layla deposits $1600 in her investment account earning 6% interest compounded monthly at the same…

A: A deposit generally refers to the placement of money, funds, or other valuables into a bank or…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: Your friend has a trust fund that will pay her the following amounts at the given interest rate for…

A: Present value is the value of money today that is to be received in future. Given, The amount that…

Q: Diego plans to invest $500 per month in their tax-free savings account for the next four years.…

A: In the given question, $ 500 is invested at the end of each month for 4 years at 8% per annum.…

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500 Starting age = 25Number of Years, n = 15Annual Interest…

Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…

A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…

Q: Justin invests $2000 at time 0. He receives $6443 at time 1 and pays $4500 at time 2. Compute the…

A: Period Cash flows 0 $-2,000.00 1 $ 6,443.00 2 $-4,500.00 A negative Sign represents a…

Q: Elizabeth has $31,209.00 in an investment account. Her goal is to have the account grow to…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: ayla invests $3000 for 8 months in an account that earns /./% hat amount will Shayla receive when…

A: The question is related to equation that models number of new trees and in the second question total…

Q: If US dollars gets lower interest rates in the United States. How would this affect a fundamental…

A: There are two methods to calculate the future or forward currency exchange rates - Interest rate…

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain…

A: Future Value = Future value is what money is expected to be worth in the future. Future Value…

Q: Jules deposits $70 each month into a 401(k) savings account paying 3.59% annually, and her employer…

A: We know the quantum of funds invested into an account and the accumulated value. We have to find the…

Q: Mena has year-to-date (YTD) earnings of $125,200. If her next paycheck put her above the wage base…

A: Social Security Tax is a U.S. government tax that funds the Social Security program, which provides…

Q: By the condition of a will, the sum og P25,000 is left to a girl to be held in trust by her guardian…

A: The time value rule states that a sum of money available in present is worth more than the same…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: Mary is going to receive a 33-year annuity of $9,800 per year. Nancy is going to receive a…

A: Cash flow:Cashflow is the vital circulatory system that fuels the operational engine of any…

Q: d. Ja d. 1

A: In this question future value when deposits are made at the beginning as well when deposits are made…

Q: 9. Implied interest rate and period Consider the case of the following annuities, and the need to…

A: Present Value is calculated by dividing the future value by the 1+r factor for the given required…

Q: Cyrus deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Interest earned refers to an amount that is being earned by the investors over the amount of…

Q: Tariq will invest OMR 3000 in an investment fund for the next 30 years starting at the end of this…

A: The future value of the annuity is the total value of all the payments which occur regularly at a…

Q: An heiress receives an income stream from a will at a rate of f(t) = 30,000e0.023 dollars per year.…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Jake plans to contribute $3600 at the end of each year to his IRA. If he earns a return of 8.5%…

A: Future Value Future value is the worth of any asset or any sum of money at a future date when such…

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Tanya wants to be able to withdraw $7000 at the end of 7 years and $9000 at the end of 8 years. If…

A: Present value is the value of future cashflow discounted to present date at specified rate. formula:…

Q: Blushing Rose invests $1,000 into her Roth IRA. She can increase thisinvestment annually by $1,000…

A: The computation is as follows:

Q: how much must your grandparents deposit today?

A: Perpetuity refers to an annuity that has no definite period and goes on for infinity. The annuity…

Q: Harper expects to live for 20 years after she retires at 65. If her investments continue to earn the…

A: I have provided the answer above for you. See the answer I provided above to understand the given…

Q: How much money should Abigail invest today into a fund that earns interest at 3.75% compounded…

A: Since interest rate is compounded quaterly and payment of annuity is made semi annually, we need to…

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: Caitlyin is saving to buy a house.She plans to deposit $12, 000into her account today and 1year from…

A: The objective of the question is to calculate the total amount of money Caitlyin will have in her…

Q: Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in…

A: Interest per year can be calculated as: = Principal * Rate * Time

Q: By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her…

A: Time will tell worth of cash changes as it complete long duration of Investement. it will tell value…

Question

Annalise will deposit into her investment account $4,500, $1,000, and
$5,500 at the end of Years 1, 2, and 3, respectively. What will her
account be worth at the end of the Year 3 if she earns an annual rate of
6.15 percent?
O $11,632.02
O $10,381.25
O $9,725.12
O $11,526.50
None of these answers are correct

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Given

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Jenny Abel is investing $2,500 today and will do so at the beginning of each of the next four years for a total of five payments. If her investment can earn 10 percent, how much will she have at the end of five years? (Round to the nearest dollar.) O $15,263 $16.789 O $18,462 O $4,026
Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79
Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Cynthia to reach her goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period
You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the following year, and •$800 at the end of the 4th year. •You can earn 14 percent on similar investments. What is the most you should pay for this one? Respuesta:
Mary is going to receive a 38-year annuity of $10,300 per year. Nancy is going to receive a perpetuity of $10,300 per year. If the appropriate interest rate is 11 percent, how much more is Nancy's cash flow worth? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value
Assume Sheryl Jenkins wants to accumulate $ 12,485.35 in two years. She currently has $ 10,809.59 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,809.59 today) to have $ 12,485.35 exactly two years from today?
Sue plans to save $4899, $0, and $5624 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.55 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Saleh is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she pay for this investment if she wishes to earn a 12 percent rate of return? a. $17,899.08 b. $18,023.88 c.. $20,186.75 d. $22,818.78
Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $90,000$⁢90,000 in 1616 years. Assuming an APR of 3.7%3.7% compounded quarterly, how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Sarah will receive a perpetual annul income of $50,000 on her retirement, commencing in 3 years time. If the interest rate is 8% per annum, how much is this worth as a single sum today? Group of answer choices 535,837 675,236 550,655 223,000
9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $3,280.16 from his uncle. The annuity will pay him five equal payments of $800 at the end of each year. The annuity fund is offering a return of Ryan's friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $30,044 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return. It will take approximately for Sebastian to save enough money to go to business school.
You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 60?-Select-You haveYour sister hasItem 3 the larger amount.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS