Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the present value of $5,000 that will be paid to you eight years from today at 8% interest?
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- how much money would you need to have in annuity paying 6% interest if you want to be able to withdraw $ 2000 each month for 20 years?arrow_forwardWhat is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?arrow_forwardHow much should you put into a 13% (annual rate) savings account in order to have 20,000 dollars in Six years?arrow_forward
- In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest rate is 8% compounded monthly? What is the value of n that you will use in the formula?arrow_forwardSuppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest.a) How much would you need to deposit in the account each month?b) How much interest will you earn?arrow_forwardYou would like to have $550,000 when you retire in 40 years. How much should you invest each quarter if you can earn a rate of 3.6% compounded quarterly?a) How much should you deposit each quarter?b) How much total money will you put into the account?c) How much total interest will you earn?arrow_forward
- If you are considering the purchase of a consol that pays $60 per year forever, and the rate of interest you want to earn is 10% per year, how much money should you pay for the consol?arrow_forwardHow much will you accumulate if you invest $800 a year for 10 years at a rate of 8% per year?arrow_forwardHow much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.arrow_forward
- if you have $100 in a savings account and the interest rate is 10% per year and you never withdraw or deposit money, how much will you have in the account after: one year, two yearsarrow_forwardWhat is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8 percent?arrow_forwardHow much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.arrow_forward
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