€You need $42.000 in eleven years Eastem bank pays 72% compounded annually You will receive a dividend of $14,000 one yearsneed to save today in the Eastem bank is closest to6.500 dollars7,500 dollars8.500 dollarsand you will save it in the Eastern bars. The amount of money that you

Amount required (FV) = $42,000Rate of return (r) = 0.072 (or 7.2%)Period (n) = 11 YearsDividend (D)…

You need $42.000 need to save today 6.500 dollars 7,500 dollars 8.500 dollar years Eastem bank pays 72 aly You will receive a dividend of $140 I save t in the Easter bank. The amount of money that you

You need $42.000 need to save today 6.500 dollars 7,500 dollars 8.500 dollar years Eastem bank pays 72 aly You will receive a dividend of $140 I save t in the Easter bank. The amount of money that you

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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€
You need $42.000 in eleven years Eastem bank pays 72% compounded annually You will receive a dividend of $14,000 one years
need to save today in the Eastem bank is closest to
6.500 dollars
7,500 dollars
8.500 dollars
and you will save it in the Eastern bars. The amount of money that you

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1. How much should you deposit into an account that pays 3.6% compounded monthly if you want to have $15,000 ten years from now? Round your answer to the nearest cent. 2. An investment of $4,500 was deposited into an account that pays 3.7% compounded daily. How much money will be in the account 5 years from now? Round your answer to the nearest cent. 3. An amount of $12,000 is deposited into an account with annual interest of 4.2% compounded monthly. In how many years will the amount grow to $18,000? Round y answer to two decimal places.
You are opening an investment account that will earn 14.5% compounded annually. You will invest $4,000 one year from today, $8000 two years from today, 6000 three years from today, and 2,000 four years from today. What will the value of your account be 4 years from today? 21,768 20,637 22,421 23,929 25,363
You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter (every 3 months) for the next 15 years. What is your annual rate of return if you have $450,000 at the end of 15 years from today? O 26.84% 19.96% 25.13% O 37.59%
You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excel
A bank loan of P6,000,000 at 10% pa, is to be paid in 10 equal payments, the first of which to be paid two years from now. How much does Mr. Eden still owe to the bank before he is going to make the 9th payment? Show your cash flow diagram. O .P1,211,510 O P1,341,154 O P 2,050,592 O P 976,472
Suppose you invested $50,000 into an account at a private bank that attracts annual interest of 20% using this formula A= Pe^rt . How long would it take to ensure it grows to become $88,000?
How much do you need to invest today if you will also invest $2,700 at the end of every year for 39 years, in order to have $1,000,000 at the end of 39 years? Assume your investments earn a rate of return of 6.5% compounded annually. O $23,166 O $76,744 O $10,257 $49,207 O $47,800
Example 1. Your company wants to have GHS 135,000 four years from now to buy a new machine. As the financial manager of the company, you've just deposited GHS 45,000 today into a new bank account for saving towards the new machine. What equal amount must the company deposit each year in order to achieve it target if the GHS 45,000 deposited today and the annual deposits can earn an interest of 12% per year?
Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25
You are opening an investment account that will earn 11.5% compounded annually. You will invest $1,000 today, $5,000 one year from today, $18000 two years from today, $8,000 three years from today, and $12,000 four years from today. What will the value of your account be 4 years from today? Question 2 options: 53,225 59,065 51,775 54,635 58,705
You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years. How much money do you have to invest today in order to achieve your goal? Select one: a. $90 251.77 b. $90 201.77 c. $90 001.78 d. $90 251.78 e. $90 001.77
You’ve invested your savings at 8% and been able to accumulate $500,000. If you withdraw $50,000 at the end of every year, how long until the balance has been reduced to zero? a. 20.91 years b. 10.00 years c. 18.49 years d. 13.91 years e. 7.63 years

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