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 save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how much will you have at the end of the periods?
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- Calculating Rates of Return Suppose an investment offers to quadruple your money in12 months (don’t believe it). What rate of return per quarter are you being offered?arrow_forwardFind how long it takes $800.00 to double if it is invested at 77% compounded annually.It will take = years.arrow_forwardYou are going to invest $5405 in 3 years and $7923 in 6 years. If you expect to earn a return of 8.26%, how much will you have in 10 years? Answer:arrow_forward
- A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.9%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? (Round to the nearest dollar as needed.)arrow_forwardIf you invest $56,000 today in an account that pays 8.3% a year, how much will you have in 31 years?Formula?Excel Function?arrow_forwardAssume that at the beginning of the year, you purchase an investment for $2,500 that pays $67 annual income. Also assume that the investment's value has decreased to $2,350 at the end of the year. a. What is the rate of return for this investment? b. Is the rate of return a positive or a negative number? Complete this question by entering your answers in the tabs below. Req 1 Req 2 What is the rate of return for this investment? Note: Enter your answer as a percent rounded to 2 decimal places. Input the amount as a positive value. Rate of return % Req 1 Req 2 >arrow_forward
- If you invest $1,200 for 40 years at an 8.1% rate of return, you will have accumulated: (Keep 2 decimal places)arrow_forwardAssuming an annual rate of return of 9.5% and depositing $3,000 at the end of every 6 months into your investment account, how much will you have after 30 years?arrow_forwardIf you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return? (20%)arrow_forward
- Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10 months Invest $1,200 and receive $130 at the end of each month for the next 10 months If this were your money, and you want to earn at least 12% interest on your money, which investment would you make, if any? Solve the problem by annual cash flow analysis.arrow_forwardSuppose you invest $160 a month for 6 years into an account earning 6% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 29 years. How much will you have in the end?arrow_forwardDetermine the annual rate of interest, to the nearest tenth of a percent, given that the investment of $34 500 is compounded monthly and after 6 years is worth $49 750. use tvm solver or graphing calculator N= 1%= PV= PMT= FV= P/Y= C/Y= PMT: END BEGINarrow_forward
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