Consider the two savings plans below. Compare the balances in each plan after 9 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Assume that the compounding and payment periods are the same for each pair. Avery deposits $50 per month in an account with an APR of 4%, while Devon deposits $600 at the end of each year in an account with an APR of 4%.

Consider the two savings plans below. Compare the balances in each plan after 9 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Assume that the compounding and payment periods are the same for each pair. Avery deposits $50 per month in an account with an APR of 4%, while Devon deposits $600 at the end of each year in an account with an APR of 4%.

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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Similar questions

Consider the two savings plans below. Compare the balances in each plan after 15 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $600 per month in an account with an APR of 5%, while Zach deposits $7200 at the end of each year in an account with an APR of 5%. The balance in Yolanda's saving plan after 15 years was $nothing.
This QuesStion: Consider the two savings plans below. Compare the balances in each plan after 14 years, Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $300 per month in an account with an APR of 4%. while Zach deposits $3600 at the end of each year in an account with an APR of 4%. The balance in Yolanda's saving plan after 14 years was S (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) The balance in Zach's saving plan after 14 years was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) Which person deposited more money in the plan? O A. Zach deposited more money in his savings plan. O B. They deposited the same amount of money in their savings plans. O C. Yolanda deposited more money in her savings plan. Which of the two investment strategies was better? O A. Yolanda's…
Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15 years while Ryan deposits $520 at the end of each year in an account with an APR of 4.7%. Assume the number of compoundings is the same as number of payments. Which person deposited more money? Kelly or Ryan? What was the total deposit of each person? Which person's investment strategy earned more interest? What amount of interest did that person make?
Consider the two savings plans below. Compare the balances in each plan after 6 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $300 per month in an account with an APR of 4%, while Zach deposits $3600 at the end of each year in an account with an APR of 4%. The balane in Yolanda's savings place after 6 years was?? Roud to seven deciamal places as needed
ronscrip Consider the two savings plans below. Compare the balances in each plan after 7 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $250 per month in an account with an APR of 3%, while Zach deposits $3000 at the end of each year in an account with an APP of 3% CTED The balance in Yolanda's saving plan after 7 years was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed) The balance in Zach's saving plan after 7 years was ound the foal to the nearest sent needed. Round all intermediate values to seven decimal places as needed.)
Consider the two savings plans below. Compare the balances in each plan after 14 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $300 per month in an account with an APR of 4%, while Zach deposits $3600 at the end of each year in an account with an APR of 4%. The balance in Yolanda's saving plan after 14 years was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) The balance in Zach's saving plan after 14 years was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) Which person deposited more money in the plan? O A. Zach deposited more money in his savings plan. O B. They deposited the same amount of money in their savings plans. O C. Yolanda deposited more money in her savings plan.
Consider the two savings plans below. Compare the balances in each plan after 6 years. Which person deposited more money in the investment strategies is better? Yolanda deposits $100 per month in an account with an APR of 5%, while Zach deposits $1000 at the end of each year in an account with an APR of 5.5% The balance in Yolanda's saving plan after 6 years was S (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) The balance in Zach's saving plan after 6 years was $. (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.) Which person deposited more money in the plan? A. Zach deposited more money in his savings plan. OB. Yolanda deposited more money in her savings plan. OC. Neither, they deposited the same amount of money in their savings plans. Which of the two investment strategies was better? OA. Zach's investment strategy was better because he had…
Use the savings plan formula to answer the following question. You put $300 per month in an investment plan that pays an APR of 2.5%. How much money will you have after 17 years? Compare this amount to the total deposits made over the time period. After 17 years the investment plan will contain blank ? The total deposits made over the time period is?
You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment. What are three important considerations in selecting a savings plan?
K Consider the two savings plans below. Compare the balances in each plan after 9 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $200 per month in an account with an APR of 6%, while Zach deposits $2000 at the end of each year in an account with an APR of 6.5%.
Use the savings plan formula to answer the following question. You put $300 per month in an investment plan that pays an APR of 3.5%. How much money will you have after 19 years? Compare this amount to the total deposits made over the time period.
Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 in a savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’s rate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not. Then show calculations to prove your point of view. What is the future value for each investment?

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