Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Future value​ (with changing​ years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has
​$9,000 for his CD investment. If the bank is offering a 3.5​%
interest​ rate, compounded​ annually, how much will the CD be worth at maturity if Jonathan picks a
 
a.
three​-year
investment​ period?
b.  
five​-year
investment​ period?
c.  
eight​-year
investment​ period?
d.  
fifteen​-year
investment​ period?
 
a. How much will the
​$9,000
CD investment at
3.5​%
interest rate be worth at maturity if Jonathan picks a
3​-year
investment​ period?
​(Round to the nearest​ cent.)
 
b. How much will the
​$9,000
CD investment at
3.5​%
interest rate be worth at maturity if Jonathan picks a
5​-year
investment​ period?
​(Round to the nearest​ cent.)
 
c.  How much will the
​$9,000
CD investment at
3.5​%
interest rate be worth at maturity if Jonathan picks a
8​-year
investment​ period?  
​(Round to the nearest​ cent.)
 
d.  How much will the
​$9,000
CD investment at
3.5​%
interest rate be worth at maturity if Jonathan picks a
15​-year
investment​ period?  
​(Round to the nearest​ cent.)
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