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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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 alt="Suppose you found a CD that pays 2.5% interest compounded monthly for 3 years.
If you deposit $11,000 now, how much will you have in the account in 3 years? (Round to the nearest cent.)
What was the interest earned? (Round to the nearest cent.)
Now suppose that you would like to have $20,000 in the account in 3 years. How much would you need to
deposit now? (Round to the nearest cent.)
$
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Transcribed Image Text:Suppose you found a CD that pays 2.5% interest compounded monthly for 3 years.
If you deposit $11,000 now, how much will you have in the account in 3 years? (Round to the nearest cent.)
What was the interest earned? (Round to the nearest cent.)
Now suppose that you would like to have $20,000 in the account in 3 years. How much would you need to
deposit now? (Round to the nearest cent.)
$
Question Help: Video 1 Video 2
Submit Question
Q Search
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- Please use the formula given , and solve with steps thank youarrow_forwardQUESTION 5 You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the nearest dollar) should you deposit each quarter into an account paying 8% compounded quarterly? Summarize the information provided, stating the interest rate in a decimal form. PN = 4000 r = 0.08 N = 2 k = 4 Identify the formula you will to solve by writing the letter of the formula here: use A. A=P.(1+rt) В. P. = P.1+ rNk 1+ С. PN = D. P. -[1+ Solve the problem and give your answer here:arrow_forwardI need answer typingarrow_forward
- solve this practice problemarrow_forwardQUESTION 31 After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 years after he retires. If the account earns 5% interest, how much will Dewey need in his retirement account when he retires? Give your answer to the nearest dollar. Summarize the information provided, stating the interest rate in a decimal form. d = r = k = N = Identify the formula you will use to solve by writing the letter of the formula here: A. A = Po(1 + rt) B. PN = Po(1 + /k) Nk C. PN = d((1 + /k)Nk – 1) ("/k) %3D D. Po = d(1 - (1 +/k¬Nk) + ("/k) Solve the problem and give your answer here:arrow_forwardquestion 2arrow_forward
- Just answers plzarrow_forwardTéll me what you want to do Aa - 21 T AaBbCcDc AaBbCcDc AaBbC AaB A - - A- TNormal 1 No Spac. Heading 1 Heas Paragraph Styles 4. You deposit $500 eachmonth into an account earning 3% interest compoundedmonthly. a) How much will you have in the account in 13 years? b) How much total money will you put into the account? c) How much total interest will you earn? retirement in 30 vears. Your account earns 8% intearrow_forwardQuestion 4 Suppose you want to have $400,000 for retirement in 20 years. Your account earns 6% interest. How much would you need to deposit in the account each month? Enter an integer or decimal numberarrow_forward
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