The Jimenez's are planning a family vacation to Dubai. Three years ago they save $2000, last year they save $2,000. this year they will save $2000, and they will have another $2000 next year - a total of 4 deposits of $2000. If they earn 3.4% in their account, how much will they have two years from now when they plan to take their trip?

The Jimenez's are planning a family vacation to Dubai. Three years ago they save $2000, last year they save $2,000. this year they will save $2000, and they will have another $2000 next year - a total of 4 deposits of $2000. If they earn 3.4% in their account, how much will they have two years from now when they plan to take their trip?

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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Similar questions

You currently have $12,000 saved up in your bank account. You believe that 2 years from now, some of your generous relatives will give you a combined gift of $5,000 as a college graduation present. If you can earn 4.5% annual compound interest on your savings, how many years will it take you, from today, to be able to afford the car you'd like to purchase, which costs $25,000?
A young engineer wants to surprise her husband with a European vacation for their tenth anniversary, which is five years from now. She determine that the trip will cost $7,000. Assuming an interest rate of 5.5% compounded daily, approximately how much money does she need to deposit today for the trip?
13) Rachel wants to take a trip to England in 3 years, and she has started a savings account today to pay for the trip. Today (8/1/02) she made an initial deposit of $1,000. Her plan is to add $2,000 to the account one year from now (8/1/03) and another $3,000 to the account two years from now (8/1/04). The account has a nominal interest rate of 7 percent, but the interest is compounded quarterly. How much will Rachel have in the account three years from today (8/1/05)?
A man needs to set up a 529 colleges saving account for his granddaughter. How much will he need to deposit each year in order to have 80000 saved up for when she goes to college in 17 years, assuming the account earns 6% return.
Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money into an account earning 4.75% interest compounded continuously, how much should she invest now, so that she will have $ 7500 in 13 years? Payment amount =
One year ago, Sinem deposited $80,000 in her investment account for the purpose of buying a flat fuve years from today. Today she is adding another $20,000 to her account. She plans on making a final deposit of $35,000 to the account one year from today. If the interest rate is 10% how much cash will be available in her investment account when she is ready to buy the flat? (Round 2 decimal places e.g 18.64)
Lauren wants to buy a car that costs $27,000. She has $22,000 in her bank account currently. If the bank provides with a 7- simple interest rate, how long she will have to wait to reach to her goal of buying that car? Round your answer to the nearest year.
Your awesome grandma has decided to use part of her retirement savings to help you through college. You will show your gratitude by taking her on a trip to Europe. (a) Her money is in an account which has 3.4% interest compounded monthly. She has dedicated $28, 000 of her savings the day you start college to send you monthly money at the end of each month for the 45 months you are enrolled in college. How much money do you get from her every month? (b) Finishing college, you get your first job. In order to take you grand- mother to her native Krokazia, you start putting away $450 at the beginning of every quarter in an account with 4.2% annual interest compounded quarterly for 5 years. How much money do you end up with at the end of the 5 years for your trip?

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