If you invest $10,228.50 into an account earning an annual nominal interest rate of 7.892%, how much will you have in your account after 11 years if theinterest is compounded quarterly? If the interest is compounded continuously?If interest is compounded quarterly: FVIf interest is compounded continuously: FVWhat is the Effective Annual Yield in percent when the annual nominal interest rate is 7.892% compounded quarterly?EAY(Note: All answers for FV should include a dollar sign and be accurate to two decimal places)

Future value of money includes the amount that was deposited initially and amount of interest being…

If you invest $10,228.50 into an account earning an annual nominal interest rate of 7.892%, how much will you have in your account after 11 ye interest is compounded quarterly? If the interest is compounded continuously? If interest is compounded quarterly: FV 1. If interest is compounded continuously: FV What is the Effective Annual Yield in percent when the annual nominal interest rate is 7.892% compounded quarterly? EAY 1. % (Note: All answers for FV should include a dollar sign and be accurate to two decimal places)

If you invest $10,228.50 into an account earning an annual nominal interest rate of 7.892%, how much will you have in your account after 11 ye interest is compounded quarterly? If the interest is compounded continuously? If interest is compounded quarterly: FV 1. If interest is compounded continuously: FV What is the Effective Annual Yield in percent when the annual nominal interest rate is 7.892% compounded quarterly? EAY 1. % (Note: All answers for FV should include a dollar sign and be accurate to two decimal places)

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

See similar textbooks

Similar questions

Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $28,500 18 months 4 semiannually $ $
Given below are the future value factors for 1 at 11% for one to five periods. Interest is compounded annually at 11%. Periods Future Value of 1 at 11% 1. 1.110 2. 1.232 1.368 1.518 5 1.685 What amount should be deposited in a bank account today to grow to $27400 three years from today? $27400 x 1.368 x 3 $27400 + 1.368 $27400 + 1.110 x 3 $27400 x 1.368 3. 4.
Ma1. An insurance company advertises that $2,483.76 will purchase a 8 year annuity that pays $200 semi-annually at the end of the period. What quarterly compounded rate of return does the investment earn? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Rate of return = 0.00%
What amount of money will accumulate to $8365.5 in 337 days at an interest rate of 8.6% p.a.?
2. Find the present value of $500 due in the future under each of these conditions: a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly compounding, discounted back 5 years c. 12% nominal rate, monthly compounding, discounted back 1 year Hint: identify the interest rate per period and the total number of periods in each scenario first. O
Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year with annual compounding. Calculate the proportion of the total value of the account that can be attributed to interest-on-interest, at the end of 15 years. * 38.06% 36.24% 25.70% 0% 100%
Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9% represents the market interest rate, you compute the monthly payment in actual dollars as $1245.51. If the average monthly general inflation rate is expected to be 0.25%, determine the equivalent equal monthly payment series in constant dollars.(a) $1159(b) $1375(c) $1405(d) $1415
What is the future value of the initial $10,000 deposit after 5 years? We assume current interest rate is = 6%, compounded monthly. $13,552.6 $13,512.5 $13,277.6 $13,488.5
What is the future value of $90,380.00 given an interest rate of 17.00% compounded quarterly for 37years? a. $30, 126,537.59 b. $42, 788, 765.48 c. $169, 361.93 d. $132,823.81
What would be the annual percentage yield for a savings account that earned $51 in interest on $750 over the past 365 days? (Enter your answer as a percent rounded to 1 decimal place.)
Which of the following nominal rates will earn the most interest? 5% compounded quarterly (j4). 5% compounded monthly (j12). 5% compounded semi-annually (j2). 5% compounded annually (jj).
Present Value of Amounts Due Assume that you are going to receive $730,000 in 10 years. The current market rate of interest is 4.5%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar. b. Why is the present value less than the $730,000 to be received in the future? The present value is less due to the compounding of interest V over the 10 years.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS