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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You put $1,000 into a savings account today that offers a 5% APR with semi-annual compounding (i.e., two times per year).
How much money will you have in the account after 2 years?
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- Suppose you have a different option to deposit $500 in a savings account at the beginning of each year for 5 years. How much would you have if the account paid 4.25%?arrow_forwardyou want to withdraw equal amount of $100 from your account each year for 3 years. To do so, how much amount of money do you need to deposit now in that account with12% annual interest rate?Check your answer with interest table where you calculate tth increase/decrease each yeararrow_forwardYou deposit $100 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 15 years? b) How much total money will you put into the account? c) How much total interest will you earn?arrow_forward
- Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?arrow_forwardIf you decide to deposit $480 every year for the next 6 years, with first deposit to be made one year from today and all deposits to be made at the end of each year, in an account that pays 4.62% APR with annual compounding, how much is this account worth in today's dollars?arrow_forwardHow much money will you have available to you after five years if you put aside $100.00 a month in an account that gives you 6.75% interest compounding monthly?arrow_forward
- you have decided to begin saving for retirement. you will deposit $800 in a bank account today. than you will deposit an additional $800 every following year for 29 years (an annuity due). if your bank pays 3.73% interest, how much will you accumulate in the account at the end of 30 yearsarrow_forwardYou want to be able to withdraw $25,000 from your account each year for 30 years after you retire. You expect to retire in 20 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?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
- How much must you deposit in the bank today if you want to have $1,500 after 4 years? Interest rate is 11%, compounding is annual.arrow_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_forwardYour bank offers a savings account that pays 2.5% interest, compounded annually. If you invest $1,000 in the account, then how much will it be worth at the end of 25 years?arrow_forward
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