Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.

Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one in the same amount at the end of the 3rd year. Manuel makes a deposit of $2,000 at the end of the 2nd year and another one in the same amount at the end of the 4th year. The effective annual interest rate on both investments is 10%. Determine by how much the accumulated amount in Natalia's account exceeds the accumulated amount in Manuel's account at the end of 5 years right after interests have been applied.

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

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Mark and John started investing at the same time. Mark makes payments of $20 at the end of each week into an investment that earns 6.25% compounded weekly. John made a single deposit into an investment that earns 6.25% compounded annually. a) At the end of 3 years, what is the future value of Mark's investment? b) John's investment has the same future value as Andy's in 3 years. How much principal did John invest?
Yolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the account paid 4% interest, compounded semiannually, use Table 12-1 to find the future value of her account. (Round your answer to the nearest cent.) $
Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. $95,037.72$103,940.74 $112,256.00$113,556.00
Sara deposits $13,900 into an account. For the first two years, money in the account earns 5.5% annual interest. After that. the interest rate jumps to 5.8% annual interest. How much would be in the account at the end of 4 years
Monica invests $1600 into an account the beginning of each quarter for 9 years, starting from today. Interest is to be paid at an interest rate of 1.4% per month, compounded quarterly. Peter, would like to invest two lump sums at the beginning of the 2nd year and 4th year, with the lump sum payment 2 times greater at the 4th year than the 2nd year. Peter's account receives the same interest rate as Monica. Determine the effective interest rate per quarter under this investment. Round your answer to the nearest 0.01% Determine the future value of Monica's investment at the end of the 9 years. Round your answer to the nearest $100 Determine what lump sum Peter must invest at the beginning of the 2nd year that would yield the same yield value as Monica by the end of the 7 years. Round your answer to the nearest $100.
Lucas made a single deposit into a savings account. At the end of saving for 18 years, Lucas has $8000 in his account. If the account gained interest continuously at a rate of 7%, how much did Lucas initially invest?
Heidi deposits $8,000 in a savings account that earns 4.5% compound interest. What is the estimated doubling time in years?
Ahlam invests a certain fund worth OMR 6,000 in Bank Muscat for 3 years. At the end of this period, she obtains an amount of OMR 7,500. What is the interest amount offered by the bank to Ahlam? a. OMR 1,500 b. OMR 2,000 c. OMR 13,500 d. OMR 500
Mr. Peabody drove to his bank and deposited $500 at the end of every three months for 15.6 years. What is the accumulated value of Mr. Peabody's annuity at 4.95% compounded semi-annually?
Gilberto opened a savings account for his daughter and deposited $1000 on the day she was born. Each year on her birthday, he deposited another $1000. If the account pays 11% interest, compounded annually, how much is in the account at the end of the day on her 12th birthday? At the end of the day on her 12th birthday, the amount in the account is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent if needed.)
A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILB
Joe has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her mortgage from cash flow ($2,000 principal). For savings, Joe saves $50 per month in an interest-bearing savings account. Annual interest earned and reinvested is $100. How much will his net worth increase in the current year?

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