Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the nominal interest rate compounded monthly.
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- Assume that $464.03 invested today will grow to $8,106.65 at the end of 47 quarters. Determine the effective annual interest rate being earned on this investment.arrow_forwardCompute the compund interest of a $3000 investment for 15 years at an interest rate of 7.25%.arrow_forwardFor the investment situation below, identify the annual interest rate, the length of the investment in years, the periodic interest rate, and the number of periods of the investment. 8% compounded bi-monthly for 10 years What is the annual interest rate?arrow_forward
- An investment of $9000 at 2% is compounded semiannually for three years. Find the future value and compound interest. Use the $1.00 future value table or the future value and compound interest formula.arrow_forwardRegular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded quarterly. If the final value of the account is $75 000, how long was the money invested?arrow_forwardQ4) If an investment grew to $12,000 in 2 years and the interest amount earned was $925.55, calculate the nominal interest rate compounded monthly.arrow_forward
- If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in the account after 10 years if the interest is compounded a) semiannually (twice a year) b) quarterly (four times a year) c) monthly (twelve times a year) d) continuouslyarrow_forwardWhat interest rate would be necessary for $7,950 investment to grow to $10,400 in an account compounded weekly for 3 years?arrow_forwardAn investment of $3,100 is made for 4 months at an annual simple interest rate of 3.75%. What is the future value of the investment (in dollars)?arrow_forward
- Calculate the balance and interest on an investment of $2 000 with a rate of 3.4% that is left for 3 years for the following compounded terms: Annually (n=1) Semi-annually (n=2) Quarterly (n=4) Monthly (n=12) Daily (n=365)arrow_forwardIf $12000 per quarter is invested in an account that earns a nominal annual interest rate of 11 % compounded monthly, how much money will be in the account at the end of 6 years? round to nearest dollararrow_forwardUse the formula for computing future value using compound interest to determine the value of an account at the end of 6 years if a principal amount of $5,000 is deposited in an account at an annual interest rate of 4% and the interest is compounded quarterlyarrow_forward
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