Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns 14.00%. How much will the account be worth 14.00 years from today?
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- If you deposit $3,500 today into an account earning an annual rate of return of 11 percent, what would your account be worth in 40 years?$__________(Round to the nearest cent.)arrow_forwardHow much would your investment be worth if you deposited $5,555.55 into a bank that paid compound interest of 4% for 10 years compounded yearly?arrow_forwardHow much do you have to invest today in a savings account that returns 6.5% interest, compunded annually, to get $25,300 at the end of 10 years?arrow_forward
- consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest? (do not round intermediate calculations. Round your answer to 2 decimal places.)arrow_forwardSuppose you deposit $1098 into an account 5 years from today that earns 11%. It will be worth $1774 ____years from today.arrow_forwardSuppose that you are to make annual deposit of $3,000 into a retirement account that pays 11% interest compounded monthly. How large will your account balance be in 20 years. öö 11:02 /arrow_forward
- You deposit $1,000 today and want to save $100 each month beginning one month from today. Your account earns a 5 percent annual interest rate. How long will it take you to accumulate $5,000?arrow_forwardYou Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual interest rate of 3 percent for 6 years, 3.6 percent for 5 years, and 4.3 percent for 9 years. How much will you have in your account in 20 years?arrow_forward2. Suppose you deposit shs 5,000,000 into an account earning 4 percent interest, compounded monthly. a) How many years will it take for your account to be worth shs7, 500,000? b) Suppose in addition to the initial shs5, 000,000 deposit, you will make monthly contributions of shs50, 000. How many years will it take for the account to grow to shs7, 500,000 in this case? c) How does your answer change if you make quarterly deposits of shs150, 000 rather than monthly contributions of shs 50,000? Explain the reason for any difference in your answer from part b. Maintain the assumption that interest compounds monthly. 3. (a)What do you understand by ordinary share? Preference share? (b)Give features of each of the two? (c)The Brigapenski Company has just paid a cash dividend of Tshs 20 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the stock? What is the stock's worth in 5…arrow_forward
- Assume that you are depositing RM500 today in a savings account that pay 6% interest per year for 7 years. The term _____ value refers to the total value of the deposit after 7 years. Select one: a. principal b. future c. compound d. presentarrow_forwardSuppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If you need $ 500000 to retire, in how many years will you be able to retire?arrow_forwardYou would like to have $78,000 in 12 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 9% interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? (Assume you can earn 9% on this deposit) c. At the end of year 5, you will receive $10,000 and deposit it in the bank in an effort to reach your goal of $78,000 at the end of year 12. In addition to the lump-sum deposit, how much must you invest in 12 equal annual deposits to reach your goal? (Again, assume you can earn 9% on this deposit)arrow_forward
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