Assume that you deposit 1,000 in an account earning 13% annual interest for 3 m What is the interest earned at the end of the 3rd month? Assume that you deposit 1,000 TL in an account earning 20% annual interest for 2 y What is the accumulated interest at the end of the 2nd year? Please calculate how large deposit of 10,000 TL today will become at a compound a interest rate of 10% for 5 years? Assume that you need 1,000 TL in 2 years. How much would you need to deposit to a interest rate of 7% compounded annually? You can make an investment that will pay you 50 TL every year starting at the end o year for the next five years and 1,000 TL at the end of the five years. If you require a return, how much should you be willing to pay for this investment?
Assume that you deposit 1,000 in an account earning 13% annual interest for 3 m What is the interest earned at the end of the 3rd month? Assume that you deposit 1,000 TL in an account earning 20% annual interest for 2 y What is the accumulated interest at the end of the 2nd year? Please calculate how large deposit of 10,000 TL today will become at a compound a interest rate of 10% for 5 years? Assume that you need 1,000 TL in 2 years. How much would you need to deposit to a interest rate of 7% compounded annually? You can make an investment that will pay you 50 TL every year starting at the end o year for the next five years and 1,000 TL at the end of the five years. If you require a return, how much should you be willing to pay for this investment?
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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Transcribed Image Text:a) Assume that you deposit 1,000 TL in an account earning 13% annual interest for 3 months.
What is the interest earned at the end of the 3rd month?
b) Assume that you deposit 1,000 TL in an account earning 20% annual interest for 2 years.
What is the accumulated interest at the end of the 2nd year?
c) Please calculate how large deposit of 10,000 TL today will become at a compound annual
interest rate of 10% for 5 years?
d) Assume that you need 1,000 TL in 2 years. How much would you need to deposit today at
a interest rate of 7% compounded annually?
e) You can make an investment that will pay you 50 TL every year starting at the end of this
year for the next five years and 1,000 TL at the end of the five years. If you require a 12%
return, how much should you be willing to pay for this investment?
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