Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made deposits of $100,000 now $25,000 every 6 months for two years. Determine the future worth after 2 years of the deposits for i=16% per year, compound quarterly. The future worth after 2 years of the deposits for i=16% per year, compounded quarterly, (in $)

Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made deposits of $100,000 now $25,000 every 6 months for two years. Determine the future worth after 2 years of the deposits for i=16% per year, compound quarterly. The future worth after 2 years of the deposits for i=16% per year, compounded quarterly, (in $)

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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Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually, with additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit 71 (Number of deposits) 1 2 OO B= $321158.22 (b) Suppose Ritchie makes 38 deposits. What is the balance of the account on the day immediately after the 38th deposit? 0 B$29923.47 B$29123.47 B= $264031.59 B, ($) $800 $ Number O B$291234.75 (It is more than $880.) $ Number S Number Q (c) Suppose Ritchie makes 438 deposits. Which is true about the…
use the appropriate formula to find the future value (in $) of $500 dollars deposited at the beginning of every 6 months, for 17 years if a bank pays 8% interest, compounded semi annually. round your answer to the nearest cent
Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.) (a) How much is in the account after the last deposit is made?$ (b) How much was deposited?$ (c) What is the amount of each withdrawal?$ (d) What is the total amount withdrawn?$
Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of every six months, for 17 years if a bank pays 8% interest, compounded semiannually. (Round your answers to the nearest cent.)
Suppose an individual makes an initial investment of $1,400 in an account that earns 7.0%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to 50). (Round your answers to the nearest cent) (a) How much is in the account after the last deposit is made? (b) How much was deposited? 1 (e) What is the amount of each withdrawal? (0) What is the total amount withdrawn? - 3 Need Help?
Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round answers to nearest hundredths or two decimal places.) a) Find the amount in the account after 11 years if interest is compounded monthly. 1 b) Find the amount in the account after 11 years if interest at continuous compound interest. c) How much interest was earned from continuous compounding in the 11 years? d) How long will it take for the amount in the account to grow to $2,000,000 if interest is compounded quarterly?
An investment of $6000 is deposited into an account in which interest is compounded monthly. Complete the table by filling in the amounts to which the investment grows at the indicated times. (Round your answers to the nearest cent.) r = 6% Time (years) Amount 1 2 3 4 5 6
Suppose an individual makes an initial investment of $2,400 in an account that earns 6.6%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (a) How much is in the account after the last deposit is made? (b) How much was deposited? (c) What is the amount of each withdrawal? (d) What is the total amount withdrawn?
1.How much must you deposit in an account today so that you have a balance of $21,829 at the end of 10 years if interest on the account is 10% p.a., but with quarterly compounding? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. 2. The Milken Company is offering you an investment that promises you $10,000 at the end of 15 years if you invest $ 5,889 today. What is the annual return on this investment? Compute your answer as a percent rounded to 2 decimal places. Record without a percent sign. For example, record .0848765 = 8.48765% as 8.49.
Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account. A $20,000 deposit in an account with an APR of 2.5%. The balance in the account after 1 year is approximately $ (Round to the nearest cent as needed.)
Use Table 12-1 to solve. Suppose a certain manufacturer deposits $7,000 at the beginning of each 3 month period for 8 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 8 year period? (b) What is the total amount (in $) of interest earned in this account?
Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%,compounded monthly, and makes additional contributions of $100 at the end of each month for aperiod of 12 years. After these 12 years, this individual wants to make withdrawals at the end ofeach month for the next 5 years (so that the account balance will be reduced to $0). (Roundanswers to the nearest cent.)a) How much is in the account after the last deposit is made?b) How much was deposited in total?c) What is the amount of each withdrawal?d) What is the total amount withdrawn?

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