For the following investments, compute the amount of compound interest earned in1 year and the annual percentage yield (APY).Compound InterestEarned in 1 YearNominal InterestPrincipalRateCompounded$5,000.00 10%semiannuallyA$36,000.00 12%monthlyCA:Annual PercentageYield (APY)BDB:AZC:AD:

CASE 1Principal (P) = $5,000Nominal rate (r) = 10% or 0.1Compounding frequency (n) = 2…

For the following investments, compute the amount of compound interest earned in and the annual percentage yield (APY). 1 year Nominal Interest Principal Rate Compounded Compound Interest Earned in 1 Year Annual Percentage Yield (APY) $5,000.00 10% semiannually A B $36,000.00 12% monthly C D A: B: Z A C: E D: A

For the following investments, compute the amount of compound interest earned in and the annual percentage yield (APY). 1 year Nominal Interest Principal Rate Compounded Compound Interest Earned in 1 Year Annual Percentage Yield (APY) $5,000.00 10% semiannually A B $36,000.00 12% monthly C D A: B: Z A C: E D: A

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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(Compound interest) To what amount will the following investments accumulate? a. $4,900 invested for 9 years at 10 percent compounded annually. b. $8,100 invested for 6 years at 9 percent compounded annually. c. $750 invested for 11 years at 13 percent compounded annually. d. $21,000 invested for 5 years at 4 percent compounded annually. a. To what amount will $4,900 invested for 9 years at 10 percent compounded annually accumulate? $nothing (Round to the nearest cent.)
A principal of $12, 000 is 3/5th itself invested at \times % interest rate for 5 years. If the same principal was invested for 2 years at an annual compound interest rate of (x+4) %. The interest return amount in dollars equalsO a. $ 4, 147.20 b. $4, 292.30 c. $4,219.80 d. $4,890.4
Which one of the following represents the highest effective interest rate per year? Select one: O a 10.5% per year, compounded semiannually O b. 10.4% per year, compounded daily Oc 10% per year, compounded quarterly Od. 10% per year, compounded monthly O e. 9.8% per year, compounded continuously
Calculate the present value of the following single amounts. Future Value Annual Rate Interest Compounded Period Invested 1. $10,000 6% Annually 5 years 2. 7,000 8 Semiannually 8 years 3. 6,000 12 Quarterly 4 years
Which one of the following represents the highest effective interest rate per year? Select one: O a. 10.5% per year, compounded semiannually Ob. 10.4% per year, compounded daily O c. 10% per year, compounded quarterly O d. 10% per year, compounded monthly O e. 9.8% per year, compounded continuously
The amount of $10,000 is invested and will be worth $21,000 in nine years What is the cortiusly compounded nominal (annual) interest rate? Select one: O a. 8.2% O b. 7.7% C. 8.8% O d. 6.5% O e. 7.1%
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the present value of $57,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%, is a.$71,501 b.$152,361 c.$47,880 d.$57,000
Manually calculate the compound amount and compound interest (in $) for the investment. Principal TimePeriod (years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $1,000 2 10 annually $ $
Using the following partial table of present value of $1 at compound interest, the present value of $96,666 to be received 3 years hence with earnings at the rate of 6% a year is Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 A..$61,479.58 b.$76,559.47 c.$66,022.88 d.$81,199.44 please give me answer
if total interest earned on an investment at 2.6% compounded monthly for 3.5 years was $618.55, what was the original investment?
Following is a table for the present value of $1 at compound interest: Year 6% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 3 2.673 2.487 4 3.465 3.170 4.212 3.791 10% 12% 0.893 1.690 2.402 3.037 5 3.605 Using the tables provided, the present value of $15,007 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%, is Oa. $11,886 Ob. $47,572 Oc. $10,250 Od. $15,007
Find (a) the compound amount and (t) the compound interest rate for the yven Investment and annual rate. $8000 for 2 years at 5% compounded annually The compound amount in the account after 2 years is $3509.58 The compound interest earned is $509.58 The compound amount in the account after 2 years is $8820.00 The compound interest earned is $820 The compound amount in the account after 2 years is $4866.61 The compound interest earned is $866.61 The compound amount in the account after 2 years is $8820.00 The compound interest earned is $820

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