Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Related questions
Question
Find the accumulated value of an investment of $15,000 at 5% compounded semiannually for 12 years.
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$20,173.33
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$27,130.89
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$26,937.84
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$24,000.00
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Expert Solution
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Step 1 Analysis
We need to use compounding interest formula given below to calculate accumulated VALUE
A=P(1+i)n
Where
A=cumulated value/final payment
i=periodic interest rate
n=number of compounding
Step by stepSolved in 3 steps
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Similar questions
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- The present value of $40,000 to be received in two years, at 12% compounded annually, is Present Value of $1 at Compound Interest Periods 1 2 3 4 6 7 8 9 10 5% 0.95238 0.90703 0.82270 0.78353 0.74622 0.89000 0.87344 0.86384 0.83962 0.81630 0.79209 0.76290 0.74726 0.71068 0.67684 0.64461 0.61391 a. $40,000 Ob. $48,112 Oc. $8,112 Od. $31,888 6% 0.94340 7% 0.93458 0.70496 0.71299 10% 0.90909 0.82645 0.75132 0.68301 0.62092 0.66634 0.56447 0.66506 0.62275 0.51316 0.62741 0.58201 0.46651 0.59190 0.54393 0.55840 0.50835 0.38554 0.42410 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197 (rounded to nearest dollar). Use the following table, if needed.arrow_forwardWhat is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple Choice O O O O $7,819.20 $7,621.01 $3,885.90 $4,905.86 $3,899.12arrow_forwardFind the amount to which $1,000 will mature in 3.5 years at 7 ¾% p.a.arrow_forward
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