Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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3. You deposited $250 in the bank for 5 years at 12%.
- If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year.
| Year |
Year Beginning Balance |
Interest | Year End Balance |
| 1 | $250.00 | ? | ? |
| 2 | ? | ? | ? |
| 3 | ? | ? | ? |
| 4 | ? | ? | ? |
| 5 | ? | ? | ? |
PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
- Use the
future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct.
| PV FV Factor | Future Value (FV) | |
| ? | ? | ? |
PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
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