Answered: Find the accumulated value of an…

Find the accumulated value of an investment of $32,000 for 7 years at an interest rate of 4.2% if the money is compounded monthly. Round to the nearest cent. DO NOT use a dollar sign.

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: You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly…

A: given, A= $1000 n=5 m=4 (quarterly compounding) Quarterly rate = 2.5%

Q: An investment promises two payments of $610, on dates four and eight months from today. If the…

A: Lets understand the basics.Value of investment is calculated by discounting payments receivable at…

Q: You need $24,856 at the end of nine years, and your only investment outlet is a 10 percent long-term…

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

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: The idea of the time value of money (TVM) holds that a quantity of currency is considerably more…

Q: Select the best answer for the question. 20. You want to invest money for three years in an account…

A: The objective of this question is to find out the present value of an investment that will grow to…

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Computation:

Q: This problem demonstrates the dependence of an annuity's future value on the size of the periodic…

Q: the amount you need to save each month

A: given fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: You need $24,056 at the end of 6 years, and your only investment outlet is an 8 percent long-term…

A: An estimate of the present value of hypothetical future cash flows for a given time period at an…

Q: Assume that you will need 60million shillings in your specialsaving account five years fromnow, to…

A: Future value is the value of current asset at a particular date in the future when it has earned…

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: also good for 13 years. How much money would you need to invest in Investment B today for it to be…

A: Information Provided: Monthly payment (Investment A) = $1650 APR (Investment A) = 7,8% compounded…

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Compute the present value of an annuity of $ 632 per year for 24 years, given a discount rate of 10…

A: The current worth of future annuities can be determined by using the PV formula function in the…

Q: Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5…

A: Down payment = $50,000Interest rate = 6% (Daily compounding)Number of years = 5 years

Q: How much must be deposited today into the following account in order to have $45,000 in 8 years for…

A: Step 1 With a certain rate of return, present value (PV) is the current value of a future financial…

Q: Find the future value of the given present value. Use 360 days per year for your calculation. The…

A: Future value is calculated by compounding the present value.

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: An annuity is a financial term that depicts a series of cash flows at equal time intervals for a…

Q: If P1,000 becomes P1,811.36 after 5 years when invested at an unknown rate of interest compounded…

A: Introduction The term "nominal interest rate" refers to the interest rate prior accounting for…

Q: accounts. Investmént A is a 12-year annuity that features end-of-month $1,000 payments and has an…

A: Future value of an annuity shows the value of investments we have in the future time period.

Q: A person buys a piece of lot for Php 148817 down payment and 10 deferred semi-annual payments of P…

A: Present value of investment refers to the value of sum borrowed by the person. Deferred annuity…

Q: 1.Compute the present value of an annuity of $503 per year for 18 years, given a discount rate of 8…

A: The present value of money is a financial concept that refers to the current worth of a future sum…

Q: 2) Fund X earns i(12) = 6% interest, while Fund Y earns i(12) = 3% interest (and both start off with…

A: in this problem you have to calculate monthly interest and calculate future value of that.

Q: An investment will pay you $36,000 in 12 years. If the appropriate discount rate is 6.3 percent…

A: Present value is calculated using following equation Present value = Future value 1+r/mn×m Where, n…

Q: Find the present value of the given future amount. $70,093 for 324 days at 6.4% simple interest.…

A: Intreast rate for 324 Days =6.4×324÷360=5.76% Future value =70,093

Q: nk will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of…

A: Effective interest rate is the interest rate after considering the impact of compounding on interest…

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: The future Value accumulated after depositing a regular amount for the period compounding with the…

Q: ou can earn .38 percent per month at your bank. If you deposit $2,100, how long must you wait until…

A: Future value of money is the amount that is deposited and amount of interest accumulated over the…

Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…

A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…

Q: A loan of $77,800 is due 10 years from today. The borrower wants to make annual payments at the end…

A: Loans are financial agreements between a lender and a borrower, where the lender provides a certain…

Q: Use a calculator to evaluate an ordinary annuity formula. For m, r, and t (respectively). Assume…

A: Given data, m=100 r=4% or 0.04 t= 12 years n=12 ( for monthly payments)

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Calculation of future values of ordinary annuities and annuities due: Answer: Future value of…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: You borrowed $18,000 from a friend and promised to pay the loan in 12 equal annual installments…

A: To calculate the annual payment for an installment loan, you can use the formula for the present…

Q: und X earns i(12) = 6% interest, while Fund Y earns i(12) = 3% interest (and both start off with no…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: You have your choice of two investment accounts. Investment A is a 9-year annuity that features…

A: The time value of money technique explains the concept that the rupee received today is worth more…

Q: Find the present value of an annuity with annual payments of $1400 per year for seven years. The…

A: It is a series of equal payments made by a borrower or investor to repay the loan or accumulate the…

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Ordinary Annuity: $300 per year for 16 years at 16%: $18,069.17 $150 per year for 8 years at 8%:…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Rate Time…

A: Future value The value of a financial asset at some time in the future is known as the future value…

Q: Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if…

A: Present value = pv = $15,000Time = t = 5 YearsInterest rate = r = 1.45%

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Annuities$500$250$1,000Interest rate8%4%0%Number of years8 years4 years4 years

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: To calculate present value: PV=Principal payments1+rate12n×12

Q: Give typed solution only If you put $200,000 into your investment account now for 10 year at 5%…

A: Every business, investor, and firm has the main aim to earn profit by selling products, interest…

Question

Find the accumulated value of an investment
of $32,000 for 7 years at an interest rate of
4.2% if the money is compounded monthly.
Round to the nearest cent. DO NOT use a
dollar sign.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

Consider the following investment. (Round your answers to the nearest cent.) $5,600 at 6 3/4% compounded quarterly for 8 1/2 years (a) Find the future value of the given amount.$ (b) Interpret the future value of the given amount. After 8 1/2 years, the investment is worth $ .
You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,900 payments and has an APR of 6 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an APR of 6 percent, also good for 7 years. How much money would you need to invest in B today for it to be worth as much as Investment A 7 years from now? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value
Find the accumulated value of an investment of $10,000 for 3 years at an interest rate of 5.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.)
Compute the present value of an annuity of $621 per year for 25 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: Answer
You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $700,000 Interest rate: 4.65% monthly 17 years Frequency Time: Periodic Withdraw: $
An investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Select the best answer for the question. 20. You want to invest money for three years in an account that pays nine-percent interest annually. How much would you need to invest today to reach a future goal of $12,000? (Round your answer to the nearest dollar.) A. $10,984 OB. $10,100 OC. $11,432 OD. $9,266
Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)
Please answer fast i give you upvote.
Determine the amount of money in a savings account at the end of 4 years, given an initial deposit of $13,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. Annually b. Semiannually c. Quarterly Future Value
You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded as follows? Note: Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Annually b. Monthly c. Continuously a. Future value b. Future value c. Future value
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 8 years at 10%. $ $150 per year for 4 years at 5%. $ $200 per year for 4 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $300 per year for 8 years at 10%: $ Future value of $150 per year for 4 years at 5%: $ Future value of $200 per year for 4 years at 0%: $

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