Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the 1st year and $625 at the end of the 2nd year, into the account. The RRSP was earning 3.20% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 5 years? Round to the nearest cent

Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the 1st year and $625 at the end of the 2nd year, into the account. The RRSP was earning 3.20% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 5 years? Round to the nearest cent

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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Use the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. Bob deposits $5000 at the end of each 6 months for 14 years in an account paying 6% interest compounded semiannually A) Find the amount he will have on deposit at maturity. B) How much interest did Bob earn? Hint: Find the total amount that was deposited by multiplying the total number deposits with amount of each deposit and then subtracting this from the future value. Show the use of the appropriate formulas for each part by indicating the evaluation of the formula with information and provide the answers. Be sure to parts using the provided letters and organize your work neatly.
On October 1, Lorelai made a single deposit of $12,000 into an investment account which earns interest of 8% compounded annually. Question: Rounded to the nearest whole dollar, what will be the balance in her account at the end of nine (9) years?
Stuart Daniels estimates that he will need $26,000 to set up a small business in 9 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? (b) How much compound interest (in $) will he earn on the investment?
Give typing answer with explanation and conclusion to all parts Scott opened an RRSP account and deposited $1,500 into it. She then deposited $1,000 at the end of the 1st year and $775 at the end of the 2nd year, into the account. The RRSP was earning 2.30% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 6 years? Round to the nearest cent
You invested $4,800 into an account. Your balance is now $14,400. Your compound annual rate of return was 4.65%. How long ago did you open the account? Question 4 options: 25.1 years 26.4 years 24.2 years 27.6 years 28.1 years
1. Mr. Pat Met invested in a bank having an annual payment of Php 100,000 for three years at a 4% annual interest rate. a. How much is the future value? b. Find the total interest earned on the investment.
Assume Bill Jones invested $4,604.93 into an account exactly one year ago. The account has an interest rate of 7.4% p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)?
Kim Baker invested $250 at the end of every 3-month period, for 5 years, at 8% interest compounded quarterly. a. How much is Kim's investment worth after 5 years? b. If Kim would have invested the money at the beginning of each 3-month period, rather than at the end, how much would be in the account?
A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.09 per annum. Determine the future worth of the deposit?
An investment was made two years and three months ago at 7% simple interest. The investor has just received the principal amount of the investment along with the P 30,000 interest. What is the principal amount of the investment?
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
Mr. Nailor invests $21,000 in a money market account at his local bank. He receives annual interest of 7% for 6 years. How much return will his investment earn during this time period? Use Appendix A. (Round "FV Factor" to 3 decimal places.) $10,521 $29,205 $31,521 $13,986

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