Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- If you earn 5% per year on your bank account, how long will it take an account with $110 to double to $220? (Do not round intermediate calculations. Round your answer to 2 decimal places.)arrow_forward1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.arrow_forwardYour bank offers you a savings plan with an APR of 2.7% compounded quarterly. You plan to save $1,000,000 after 35 years. (Keep 2 decimal places in your final answers.) 3.1) How much should you deposit quarterly in order to reach this goal? 3.2) How much will you deposit over the 35 years? 3.3) Find the amount of interest (in $) you will earn during those 35 years.arrow_forward
- You have $15,852.43 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $240,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. yearsarrow_forwardyou need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.arrow_forwardYou are planning to make monthly deposits of $340 into a retirement account that pays 9 percent annual interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future valuearrow_forward
- You will require $650 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)arrow_forwardSuppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra $28,000 over the next 33 years. What amount must be deposited quarterly into an account that earns 4.7% interest, compounded quarterly, in order to reach your goal? Round your answer to the nearest cent, if necessary.arrow_forwardYou would like to put some money into an account so that you will have $6000 in the account 13 years from now. If the account earns 3.5% interest per year, compounded quarterly, how much should you invest now in order to reach your goal? Give the answer correctly to 2 decimal places. dollars Do NOT use the dollar sign in the answer box. nsarrow_forward
- You want to have $49,000 in your savings account 4 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.7 percent interest, what amount must you deposit each year? Multiple Choice $3,282.96 $11,085.33 $14,206.71arrow_forwardIf you put $1,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in 7 years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use the Appendix A . (Hint: Use the future value formula.) $ How much interest will you earn during the 7 years? Round the answer to the nearest cent. $ If you put $1,000 at the end of each year into a savings account that pays interest at the rate of 3 percent a year, how much would you have after 7 years? Use the Appendix B . Round the answer to the nearest cent. Round FV-factor to three decimal places. $arrow_forwardHow to set this up in Excel?arrow_forward
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