Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Jesaki Bank offers a 10-year CD that earns 2.3% compounded continuously.
If $10,000 is invested in this CD, how long will it take for the account to be worth $11,154? Round to the nearest tenth of a year.
____years
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- 1. What is the future worth of a serios of equal deposits of $1500 for 10 years in a savings account that earns 10% annual interest if: a) All deposits are made at the end of the year? b) All deposits are made at the beginning of each year?arrow_forwardGary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927 $29854arrow_forwardYou open a bank account, making a deposit of $300 now and deposit of $1000 every other year (the first $1,000 deposit is at the end of the second year). What is the total balance at the end of 10 years from now if your deposits earn 10% interest compounded annually?arrow_forward
- First simple bank pays 6.4 percent simple interest on its investment accounts. If first complex bank pays pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First simple bank over an investment horizon of 10 years?arrow_forwardSuppose $8,000 is invested in an account with an annual interest rate of 4.7% per year, compounded monthly. How much money will be in the account after 35 years? $ Round your answer to the nearest penny. How long will take for the investment to double? years. Round to two decimal place.arrow_forwardHow much would you need to deposit in an account each month in order to have $10,000 in the account in 8 years? Assume the account earns 7% interest. Please step by step answer.arrow_forward
- FlybynightSavings.com is offering a savings account that pays 32% compounded continuously. How much interest would a deposit of $4,000 earn over 5 years? (Round your answer to the nearest cent.) $= What is the annually compounded interest rate (in percent) that would correspond to this investment? (Round your answer to two decimal places.) %arrow_forwardYou deposit $6000 into an account earning 8.8% annual interest, compounded quarterly. How many years will it take for this account to be worth $25,000? Give your answer to the nearest tenth of a year. Blank 1. Calculate the answer by read surrounding text. yearsarrow_forwardA bank offers and investment account that has an annual interst rate of 9.9%, compounded quarterly. At the end of a 132 month year period you'd like to have $50,000 in the account. If your investment is made as a lump sum at the beginning how much do you need to contribute?arrow_forward
- A $2 million deposit earns 7 percent for 13 years. If the account earns 9 percent per year forever after that, how long will it take to grow to $5 million? O zero; the account exceeds $5 million after 13 years O 0.26 year O 0.43 year O 1.18 yearsarrow_forwardYou open a bank account, making a deposit of $10000 now and deposits of$5,000 every other year. What is the total balance at the end of 8 years fromnow if your deposits earn 5% interest compounded annually?arrow_forward1. Five years from today, you would like to withdraw $5,000 from an account that pays an interest rate of 5% per year. How much do you need to deposit in the account one year from today in order to make the withdrawal?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author: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 ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
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