You are 19 years old today. You want to have $381,507.06 in an investment acce when you are 60 years old. You will start with an initial deposit in one year from and grow it by 3% per year for a total of 15 investments. How much is the amou of that initial deposit? Assume an interest rate (a.k.a. return on your investment 6%. Use the $ sign and a comma and round to the nearest thousand...(e.g. $8,00 would be the form of a correct answer). Hint..the correct answer should be ver close to a multiple of $1,000.

You are 19 years old today. You want to have $381,507.06 in an investment acce when you are 60 years old. You will start with an initial deposit in one year from and grow it by 3% per year for a total of 15 investments. How much is the amou of that initial deposit? Assume an interest rate (a.k.a. return on your investment 6%. Use the $ sign and a comma and round to the nearest thousand...(e.g. $8,00 would be the form of a correct answer). Hint..the correct answer should be ver close to a multiple of $1,000.

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 purchased an FRN with a maturity of 7 years, pays USD SOFR annually, and has a face value of USD 6m. At the time SORF was equal to 1.39%. Three years later you check the news and you see that SORF is 4%. What is the value of your investment? (please type in your answer rounded to the nearest dollar: e.g. 4,500,009.02 should be entered as 4,500,009)
You want to invest $24,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded quarterly. What is the effective rate of return that you will earn from this investment?
Today, you invest a lump sum amount in an equity fund that provides an 12% annual return. You would like to have $10,900 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $10,900 goal? Do not round intermediate calculations. Round your answer to the nearest cent.
5. An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days. What is the % of Annual Effective Return? 6. If the monthly (periodically) interest is 1% for a one-month deposit, what is the Annual Effective Return?
You are going to buy an apartment, and are borrowing 5 000 000 from a bank for 10 years. The interest rate is 3% (APR), the payments are monthly. How much is the EAR that the bank will earn from the loan?
a) Suppose you have $10,000 to invest in a savings account, and you have two investment options available to you. Option A is a savings account that pays an annual interest rate of 5% with compounding annually, while option B is a savings account that pays an annual interest rate of 4.5% with compounding quarterly. Both options have a 5-year term. Which option should you choose to maximize your return on investment? Why? b) Which factor do you think played a critical role in your investment decision making?
You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58 percent per year for the first 20 years and 6.81 percent per year for the last 21 years. How much will you have (in $) at the end of the two periods? Answer to two decimals. < Previous
You plan to invest $13223 into an investment that you hope will earn a return of 10.28 % . You will withdraw your money in 24 years. How much will you withdraw?
Ali wants to choose a better option for making investment, help him to decide which the better option is by calculating time value of money for the following: a) An investment of OMR. 49000 in a Bond which pays 4.75% interest for 10 years b) A Bank deposit of OMR. 49000 which pays 4.75% interest for 10 years but compounding is done quarterly.
An investment you have will mature in 6 months and will give you $13,000 at that time if your initial deposit is $12,000. What is the nominal annual interest rate and what is the effective interest rate?
Suppose you deposit $650 per month in a mutual fund that is expected to bear 10% interest compounded monthly. If you do this faithfully, how much will your account be worth after 29 years? Round your answer to the nearest whole number.
You currently have $15,804. You plan on investing it at 20 percent per year until you have $68,555. How long will you wait until you achieve this goal? Enter the answer with 2 decimals (e.g. 1.23).

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