Hi help me please it's econ finance class work second picture is question wer of Compounding - fillable.pdf-Adobe Acrobat Reader DCt View Window HelpToolsThe Power of Comp.. x早2 a D2 / 4Scenario #2: PamelaPamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market*through an index fund that averages a 7% return over this 40 year period.Co5. What is the total balance in6. How much of the total didor7. How much money did Pamelamake through compoundedreturns in this investmentthe account after 40 years?Pamela contribute herself?Seaccount?Co8. Why is Pamela's total balance so much greater than Raul's even though she contributed the same amount ashe did?DocEngCorO Type here to search立 1 / 4早2 &Duse one of these calculators to better understand the power of compounding.Part I: The Power of CompoundingUse the compound interest calculator to answer the questions for each of the following scenarios. Here are a few thingsto do when using the calculator:The Initial Investment will be the same as the Monthly Contribution.Set the Compound Frequency to Annually.Round all monetary answers to the nearest whole dollar.P Type here to search

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Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market through an index fund that averages a 7% return over this 40 year period. 5. What is the total balance in the account after 40 years? 6. How much of the total did 7. How much money did Pamela make through compounded Pamela contribute herself? returns in this investment account?

Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market through an index fund that averages a 7% return over this 40 year period. 5. What is the total balance in the account after 40 years? 6. How much of the total did 7. How much money did Pamela make through compounded Pamela contribute herself? returns in this investment account?

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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Find the monthly payment R needed to have a sinking fund accumulate the future value A. The yearly interest rate r and the time t in years are given below. Interest is compounded monthly. A= $9,000; r=7%; t= 1 R=$ (Round up to the nearest cent.) ue ue ie Enter your answer in the answer box and then click Check Answer. ue All parts showing Clear All Check Answer To see what to study next, go to your Study Plan. 99- a
Annuity Formulae Problem. only need help with d,e,f please. please type and explain You may want to use a spreadsheet to actually find the solutions to some of these problems. But make sure to write out the equations you need to solve in your answers. a. What is the present value of 15 annual payments of $100, with the first payment one year from now, if the discount rate is 0.05? b. What is the present value of 15 annual payments of $100, with the first payment right now, if the discount rate is 0.05? c. What is the present value of 15 annual payments of $100, with the first payment five years from now, if the discount rate is 0.05? d. At what discount rate would the present value of 15 annual payments of $100, with the first payment right now, be 0? e. How many annual payments of $100, with the first payment right now, would it take to be worth more than $1,000, if the discount rate is 0.05? f. What is the value of 15 annual payments which begin at $100 one year from now and increase…
uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X
For TVM calculator: Write each known variable’s value as it appears in the calculator and use a question mark for the missing variable. Then, in the space provided write the missing variable’s value, as it appears in the calculator. Finally, write your final answer in context, with units, as a complete sentence. Donald is looking to invest in an account earning an interest rate of 1.75% compounded weekly and make weekly payments. If he wants $21,000 in 10 years, what do his payments need to be? N=520 I= 1.75 PV=? PMT=? FV= 21,000 P/Y=52 C/Y=52 Missing Variable Value __________________ Context Sentence:
Questions: 1. Using simple interest computations, find the future value of $3,620 at 2 38%/2 38% 2. Now, using compound interest computations, find the future value of $3,620 at 2 38%/2 38% Time Value of Money Solver). Show what you put into the calculator for your work. 3. Now, using compound interest computations, find the future value of $3,620 at 2 38%/2 38% Time Value of Money Solver). Show what you put into the calculator for your work. 4. Explain why the future values are different in questions 1-3. Explain who would benefit from more frequent compounding. Who would be at a disadvantage from more frequent compounding.
Please answer the second part of the question Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) $800 per year for 10 years at 14%.$ $400 per year for 5 years at 7%.$ $800 per year for 5 years at 0%.$ Now rework parts a, b, and c assuming that payments are made at…
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For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
ces You have a choice of four increasing annuities as shown in the table below. Which annuity will reach a future value of $100,000 the earliest? Annuity B Annuity C $1100 Annuity D $800 $57 8% 3% 52 1 Payment Annual Rate Interest Periods Per Year Annuity A $300 5% 12 (Use the interactive figure to find your answer.) Click here to launch the interactive figure. Choose the correct answer below. OA. Annuity D OB. Annuity A OC. Annuity B OD. Annuity C 9% 4 چلے i, 14e gin MLM Incorrec

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