Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Your goal is to have $12,500 in your bank account by the end of eight years. If the interest rate remains constant at 8% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.)
$1,292.71
$1,175.19
$940.15
$822.63
If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you still wanted to reach your goal by the end of eight years? (Note: Round your answer for PMT to two decimal places.)
$87.05
$82.70
$108.81
$65.29
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- You invest $9000 in an account that pays simple interest of 2% for 13 years. What is the interest you will have at the end of the indicated period?arrow_forwardBoth questionsarrow_forwardIf you deposit money today in an account that pays 7% annual interest, how long will it take to triple your money? 13.24 years 1,570.00 years 0.35 years 16.24 yearsarrow_forward
- If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 32% annually? note: calculate to the nearest decimal. For example, if the answer is 12.56 years, then input your answer as 12.6arrow_forwardGive typing answer with explanation and conclusionarrow_forwardSuppose 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. $29.25arrow_forward
- It's the first day of the year and you currently have $3,500 in the bank. You plan to deposit $200 at the end of every year for the next 56 years, with the first payment made 1 year from now (payments from t=1 to t=56 inclusive). If bank interest rates are 1% pa, how much money will be in your bank account a moment after making your last deposit in 56 years? Question 3 Select one: a. $6,110.33 b. $14,654.33 c. $14,700 d. $21,026.53 e. $21,236.8arrow_forwardCan u also answer part 2arrow_forwardCan i get help with solving the attached?arrow_forward
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