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:Phil has systematically contributed $3000 to his RRSP at the beginning of every three months for the past 17 years.
If the RRSP has earned 8.8% compounded quarterly, what is the value of Phil's RRSP today? (Do not round Intermedlate calculations
and round your final answer to 2 declmal places.)
The value of the RRSP today
$ 54600.00
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Transcribed Image Text:Liam purchases an annuity for $700,000 that provides beginning-of-month payments for 15 years.
If the annuity earns 4.5% compounded monthly, what monthly payment will he receive? (Do not round Intermedlate calculations and
round your final answer to 2 decimal places.)
Liam will receive $ 5354.95 per month.
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- Mr. Merkel has contributed $152.00 at the end of each six months into an RRSP paying 6% per annum compounded annually. Mr. Merkel has contributed $152.00 at the end of each six months into an RRSP paying 6% per annum compounded annually. How much will Mr. Merkel have in the RRSP after 10 years? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) How much of the above amount is interest? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)arrow_forwardHow much larger will the value of an RRSP be at the end of 20 years if the contributor makes month-end contributions of $500, instead of year-end contributions of $6000? In both cases, the RRSP earns 7.75% compounded semiannually?arrow_forwardAngela deposits $1500$1500 into an account with an APR of 2.2%2.2% for 1111 years. Find the future value of the account if interest is compounded monthly. Round your answer to the nearest hundredth, if necessary.arrow_forward
- Bill needs to determine the equivalent value in 1 quarter of a payment of $1200 due in 3.33 quarters. Money is worth 7% compounded semiannually. Select one: a. $1138.22 b. $1249.14 c. $1152.79 d. $1108.92arrow_forwardTwo years ago, Kevin invested $9,400.00. Today, he has $10,800.00. If Kevin earns the same annual rate implied from the past and current values of his invsetment, then in how many years from today does he expect to have exactly $40,700.00 O 19.11 years (plus or minus 0.05 years) O 21.11 years (plus or minus 0.05 years) O 13.91 years (plus or minus 0.05 years) O 29.07 years (plus or minus 0.05 years) O None of the above is within .05 percentage points of the correct answerarrow_forwardAndy invested a certain amount of money which he saves in account that earns 4% per year, compounded annually over a 15-year period. Starting in year 16, he begins making equal annual withdrawals $3500 for thenext 10 years. Assuming Andy's account is fully depleted after making these withdrawals, what is the amount invested in the account initially?arrow_forward
- How much larger will the value of an RRSP be at the end of 20 years if the contributor makes month-end contributions of $670, instead of year-end contributions of $8,040? In both cases the RRSP earns 7.2% compounded semiannually. (Do not round intermediate calculations and round your final answer to 2 decimal places.) larger The RRSP will bearrow_forwardMr. Kinders has contributed $189.00 at the end of each month into an RRSP paying 3% per annum compounded annually GILE How much will Mr. Kinders have in the RRSP after 12 years? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.). How much of the above amount is interest? (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)arrow_forwardKaileika's retirement plan consists of contributing $123 at the end of each month into an RRSP. If the plan earns 5.5% compounded quarterly for the first fourteen years and 6.5% compounded semiannually thereafter, how much money will be in Kaileika's RRSP at the end of a thirty-three year term? Today = $ FV1 = + FV = $ $123 $123 14 years 45 Calculate the following values on the time diagram. $123 FVI + $123 47 years + $123 $123 ►FV2 aarrow_forward
- Five years ago, a man invested P 80,000 at 5% compounded semi-annually. How much is his money now? a. P92,406.76 b. P98,495.87 c. P102,102.53 d. P102,406.76arrow_forwardK Mr. Deneau accumulated $94,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5100 at the end of every three months from the fund. If interest is 10.35% compounded monthly, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months). He can make withdrawals for year(s) and month(s). Barrow_forwardA man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this lump sum at the end of 10 years if the cost of money is 14% compounded quarterly? A P141,059.88 P8,455.027.78 P345,789.22 D. P1,511,433.22arrow_forward
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