Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:$14,000 to Mel Lyon to
Internet business. Mel plans to repay Jean at the
end of 6 years with 6% interest compounded
semiannually. How much will Jean receive at the
end of 6 years?
14
14-20. Molly Slate deposited $35,000 at Quazi Bank
at 6% interest compounded quarterly. What is
the effective rate (APY) to the nearest hundredth
percent?
14-21. Melvin Indecision has difficulty deciding whether
Excel
his savings in Mystic Bank or Four Rivers
put
Bank. Mystic offers 10% interest compounded
semiannually. Four Rivers offers 8% interest
compounded quarterly. Melvin has $10,000 to
invest. He expects to withdraw the money at the
end of 4 years. Which bank gives Melvin the bet-
ter deal? Check your answer.
to
4-22.
Brian Costa deposited $20,000 in a new savings
account at 12% interest compounded semiannu-
ally. At the beginning of year 4, Brian deposits an
additional $30,000 at 12% interest compounded
semiannually. At the end of 6 years, what is the
balance in Brian's account?
14-
--23. Lee Wills loaned Audrey Chin $16,000 to open
hair salon. After 6 years, Audrey will repay Lee
with 8% interest compounded quarterly. How
much will Lee receive at the end of 6 years?
14
a
24
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- Jane has a 90-day bank Certificate of Deposit that pays 8% compounded quarterly. She is starting with $2,000 and adding $100 at the beginning of each quarter, starting now. How much will Jane have in her account in five years? $5,241,20 $5,450.23 $5,671.02 $5,401.63arrow_forwardYour bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $) of $700 deposited at the beginning of every six months, for 16 years. Round your answer to the nearest cent.)arrow_forwardYou borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $163 (first payment made at t = 1), followed by five annual payments of $452, followed by four annual payments of $709. How much did you borrow? Round your answer to 2 decimal places: record your answer without commas and without a dollar sign. Your Answer: Answerarrow_forward
- A bank CD that pays 6.86 percent compounded daily (on a 365-day per year basis). Calculate the effective annual interest rate (EAR).arrow_forwardSuppose Eli deposits $1,000 into a savings account. The savings account earns4.2% compounded monthly. Find the APY for the account. Round the percent to two decimals.arrow_forwardSuppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $130 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest cent.)arrow_forward
- 3. Scott deposits 80 today into an account that credits a nominal interest rate of 6% compounded quarterly. pe Roberta deposits X today into an account that credits a nominal discount rate of 4% compounded semi-annually (twice per year). After 18 years, the balance in Scott's account is equal to the balance in Roberta's account. Determine X.arrow_forwardYou invest $6,600 into a savings account at Mountain America Credit Union which pays 1.8% annual interest compounded quarterly. How much interest will you earn after 3 years? $89.50 $365.35 $6,689.50 $6,965.35arrow_forwardIf the interest earned by a savings account paying an APR of 1% is compounded quarterly, what percent of the current balance is added to the account as interest every three months during the year? What about for 4%, 5%, and 7%? (Enter an exact answer and use decimals if needed.) percent of current balance added as interest for 1% APR: percent of current balance added as interest for 4% APR: percent of current balance added as interest for 5% APR: percent of current balance added as interest for 7% APR: 28arrow_forward
- A.Halep Inc. borrowed $17,128 from Davis Bank and signed a 2-year note payable stating the interest rate was 4% compounded annually. Using the Present Value of an Annuity of 1 TABLE4, calculate the factor. Next, determine the annual payment amount. Round to the nearest penny, two decimal places. B.Halep Inc. borrowed $34,243 from Davis Bank and signed a 5-year note payable stating the interest rate was 3% compounded annually. Using the Present Value of an Annuity of 1 TABLE4, what is the factor?arrow_forwardFirst Bank of Midesto Medeque pays a 6.01% nominal rate of interest compounded weekly. What is the effective rate of interest?arrow_forward
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