
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Use 365 for the number of days in a year.
Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. (Round your
answer ro rhe nearest cent.
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- Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 6% compounded daily after 3 yearsarrow_forwardDetermine the amount of money in a savings account at the end of 4 years, given an initial deposit of $13,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. Annually b. Semiannually c. Quarterly Future Valuearrow_forwardUse 365 for the number of the days in a year. Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. Round your answer to the nearest cent arrow_forward
- A deposit of $8441 will amount to $11789 in 10 years with interest compounded monthly. What is the nominal rate of interest? (Round your answer to 2 decimal places)arrow_forwardFind the amount of interest paid on on a $800 Investment that earns 4.9% simple annual interest for 30 days. In this problem, use the Bankers' Rule, which stipulates that 1 year 360 days. Round to the nearest cent (two decimal places.) Sarrow_forwardUse the appropriate formula to find the future value (in $) of $300 deposited at the beginning of every six months, for 19 years if a bank pays 4% interest, compounded semiannually. (Round your answers to the nearest cent.)arrow_forward
- Suppose that you will deposit $184 at the end of each month for the next 24 years into an account with an APR of 11% and monthly compounding. How much money will be in the account at the end of the 24 years? Round your final answer to two decimals. Show formula in Excel.arrow_forwardCalculate the following: a. The future value of a deposit of $400 left in an account paying 4% annual interest for 13 years. b. The future value at the end of 6 years of a $850 annual end-of-year deposit into an account paying 11% annual interest. a. The future value, FV, on a deposit of $400 left in an account paying 4% annual interest for 13 years is $ the nearest cent.) (Round toarrow_forwardFind the time t, in years, for the principal P = $715 to reach the future value F = $740 under r = 1.89% interest compounded quarterly. Round your final answer to two decimal places. arrow_forward
- You deposit $2000 in an account earning 8% interest, compounded quarterly. How much will you have in the account after 11 years? Round your answer to the nearest cent.arrow_forwardFor these problems round to at least five decimal places for your work. You may round your final answer to the nearest cent. If $5000 is invested in a savings account with an annual interest rate of 0.09% compounded monthly, how much will the account be worth in 17 years? Note: the interest rate is given as a percentage! If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously, how much will the account be worth in 5 years? Suppose you want to have $200 in an account after 5 If the account generates interest at a nominal rate of 9%, compounded quarterly, how much should you invest in the account now? years. What is the annual percentage yield for an account with a nominal interest rate of 12%, compounded monthly?arrow_forwardIf you were to borrow $8,400 over five years at 0.14 compounded monthly, what would be your monthly payment? Round to two decimal places.arrow_forward
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