Question 6.10 To accumulate 36,419.74 at the end of 3n years, deposits of 174 are made at the end of the first n years, and deposits of 87 are made at the end of each of the next 2n years. The annual effective interest rate is i, and you are given that: (1+1)" = 3 Calculate /. A 7.64% B 10.51% C 10.75% D 14.81% E 15.05%

Question 6.10 To accumulate 36,419.74 at the end of 3n years, deposits of 174 are made at the end of the first n years, and deposits of 87 are made at the end of each of the next 2n years. The annual effective interest rate is i, and you are given that: (1+1)" = 3 Calculate /. A 7.64% B 10.51% C 10.75% D 14.81% E 15.05%

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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SIMPLE vs COMPOUND INTEREST I simp. = P *r *t where P – principal amount (the initial amount you borrow or deposit), r – annual rate of interest (as a decimal), t – number of years the amount is deposited or borrowed for. nt Тcomp. 1(1+)* – 1] * where n – number of times the interest is compounded per year. 2. If you take a three-year simple-interest loan of 100 000 CZK at annual interest rate of 5,5%, what would be the total amount of interest paid? Total number of Principal Interest rate Time period Total Interest paid compounding periods (CZK) (as a decimal) (number of years) (CZK) 100,000 0.055 3 16,500
If P12, 000.00 is accumulated to P13, 000.00 when invested at simple interest for 2 years, what is the interest rate Select the correct response: 4.17% 7.15% 9% O 23 %
What compound interest rate j, is equivalent over 11-year period to a compound interest rate of i12=2.26 % for 8 years followed by a compount interest of i=7.31 % for the next 3 years ? Answer: 3.86%
Question 7 of 10 > Every year you deposit $3,400 into an account that earns 2% interest per year. What will be the balance of your account immediately after the 20th deposit? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Choose the correct answer below O A. $79,464 O B. $68,000 OC. $82,611 OD. $51,438 O E $84,263
QUESTION 4 For the next 13 years, you will deposit $2,250 every quarter in a savings account. The account pays 3,75% interest compounded quarterly. What is the future value of this series? a. 93,585.77 O b. 149,891.29 O c. 72796.45 O d. 436,228.07
What compound interest rate j12 is equivalent over 10-year period to a compound interest rate of i1=1.28 % for 9 years followed by a compount interest of i2=14.52 % for the next 1 years ? Answer: 0.0253
Question Consider the first payment against a $200,000 mortgage that last for 25 years. Fixed repayments are made on a monthly basis. The first row of the amortization schedule is shown below. Payment # 1 2 Payment d Interest 716.67 ... Debt Payment P1 Calculate d, the fixed monthly payments that are made. Round your answer to the nearest cent. Balance b₁ Ih
18.How much amount should an investor deposit in an account earning a continuously compounded interest rate of 8% for a period of 5 years so as to earn $2,238?A. $1500.B. $1523. C. $1541. Use excel.
PROBLEM SET 2 (INTEREST) Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. 1. • A. 7% . В. 5% • C. 8% • D. 6% 2. Compute the nominal rate for a period of 6 years for an effective rate of 8.33% if it is compounded continuously. • A. 7% • B. 5% • C. 8% • D. 6% 3. A man loan P2000 from the bank. How long would it take in years for the amount ofthe loan and interest to equal P3280 if it was made at 8% simple interest. • A. 7 years . В. 5 years • C. 8 years • D.6 years 4. A man loan P2000 from the bank. How long would it take in years if it was made at8% compounded quarterly. A. 5.25 years B. 7.25 years • C. 6.25 years • D.8.25 years
Assuming a 14% interest rate, which of the following is closest to the total present value of the following payments? Year 3 $12,000 Year 5 $10,000 Present Value of $1 Periods 14% 1 0.877 2 0.769 3 0.675 4 0.592 5 0.519 0.456 0.400 6 7 8 9 0.351 0.308 10 0,270 $12.978 $13,290 $8,100 O $32,054 Present Value of Annuity Periods 14% 0.877 2 1.647 3 2.322 4 2.914 3.433 3.889 4.288 1 5 6 7 8 9 10 4.639 4.946 5.216
You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 10. At an interest rate of 10% per year, determine the annual worth equivalent through year 1 to 10. Select one: O a. 10282.48 O b. 6137.27 O c. 4540.89 O d. 5717.52 O e. 9862.73
QUESTION 7 What is the equivalent value in period 4 of a series consisting of 11 yearly deposits of $8,000 considering an 6% interest compounded yearly. O 6,134.67 O 10,803.23 O 79,655.98 O63,095.00

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