Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How much would you have to deposit today to be able to withdraw $1,000 EACH year
forever. You believe you can earn 4% annual
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- how much money would you need to have in annuity paying 6% interest if you want to be able to withdraw $ 2000 each month for 20 years?arrow_forwardHow much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of this year, then increase your annual contributions by 2% each year thereafter? You expect to earn 5% compounded annually on your savingsarrow_forward1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.arrow_forward
- How much money will you have available to you after five years if you put aside $100.00 a month in an account that gives you 6.75% interest compounding monthly?arrow_forwardYou would like to have 950,000 when you retire in 30 years. How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly? How much should you deposit each quarter? How much total money will you put into the account? How much total interest will you earn?arrow_forwardYou want to be able to withdraw $25,000 each year for 30 years. Your account earns 8% interest.a) How much do you need in your account at the beginning?$b) How much total money will you pull out of the account?$c) How much of that money is interest?arrow_forward
- Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How much would you need to deposit in the account each month?arrow_forwardyou need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.arrow_forwardHow much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.arrow_forward
- Suppose you want to have $600,000 for retirement in 20 years. Your account earns 6% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earnarrow_forwardYou want to be able to withdraw $30,000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?arrow_forwarda. You need $17,000 in five years but you only have $12,000 now. At what interest rate must you invest the money assuming the interest is compounded annually? b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? c. You put $2,750 into an account earnings 4% interest compounded QUARTERLY. How much will be in this account at the end of 4 YEARS? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? e. How long will it take to double $2,000 to $4,000 assuming you invest the $2,000 into an account earning 7% interest compounded annually?arrow_forward
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