5. A. compounded continuously. She ultimately would like to purchase a $15000 car. How much would she Miss Kito decides to invest some of her money in an account gaining 7% interest have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole dollar. Note: For continuous compounding you can use the formula: A = Pert

5. A. compounded continuously. She ultimately would like to purchase a $15000 car. How much would she Miss Kito decides to invest some of her money in an account gaining 7% interest have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole dollar. Note: For continuous compounding you can use the formula: A = Pert

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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Task 3: Answer the following: a. Waleed wants to find out the annual rate of interest, will a principal RO 275 to amount to RO 9275 in 19 years? b. Saif is planning to buy a house in 19 years. He wants to invest RO 275 now and hopes to have RO 9275 to spend on the house when he buys it. What kind of interest rate would he need if his investment is compounded monthly? c. By using Excel, solve the following: (Note provide a screenshot of your work) If you have R.O. 9275 and you want to make a small business that will provide you a steady income for 19 year. Currently, banks are paying 19% compound interest on the annual basis. How much would you be able to receive at the end of each year?
You want to buy a nice road bike. You place $2,400 each year in an investment account that earns 4% compounded annually. How much will be in the account after (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (EV of $1. PV of $1. EVA of $1, and PVA of $1) a. b. C Annuity Annual Interest Payment Rate Compounded $ 2,400 2,400 2,400 4% Annually 4% Annually 4% Annually Period: Invested 2 years 3 years 4 years Future Value of Annuity
5. Megan invests her savings Po into a brokerage account that claims to payout a nominal interest rate r. Answer the following questions. a. If the account is compounded annually and the amount doubles after 10 years, what is the nominal interest rate. b. If the account is compounded continuously, with a nominal interest rate of 6% and after 5 years reaches a balance of $5,000, what was the initial investment Po?
You are saving for a new car. You place $15,400 into an investment account today. How much will you have after four years if the account earns (a) 2%, (b) 4%, or (c) 6% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Investment Amount $ 15,400 15,400 15,400 Interest Rate 2% 4% 6% Compounding Annually Annually Annually Period Invested 4 years 4 years 4 years $ Future Value 15,400.00
Please use formula in solving. You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order to pay for the remaining amount, you take out a loan from the bank at a 9% interest rate to be paid for 25 years. a) What is your monthly payment?b) What is the total interest paid for the loaned amount?c) How much of the principal has been paid after 10 years? d) After 15 years, you decide to sell the house. How much should the selling price be to cover the remaining balance of the payments?
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
Multiple Choice Questions Choose the correct answer 1. Fatima now has $187. How much would she have after 6 years if she 5 points leaves it invested at 7.5% with annual compounding? * a) $288.59 b) $268.80 c) $364 d) $245.50 e) None of the above 2. If you deposit 1500$ in bank account that pays 10% interest annually. how long will it take to double your money? 5.00ts a) 5 vear
You are saving for a new car. You place $14,200 into an investment account today. How much will you have after four years if the account earns (a) 4%, (b) 6%, or (c) 8% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Syvia bought a house for $300,000 with an installment loan for 30 years (360 monthly payments). Nominal interest rate per year is 4%. How much should she pay per month? Include the following variables to help solve the problem: m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV
Performance task No.2: SIMPLE INTERESTS Directions: Complete the table below. Show your solution on a separate sheet. 1. Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and is due in 3 years. 2. Amparo invested a certain amount at 10% simple interest per year. After 2years, the interest she received amounted to P3,000. How much did she invest? 3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he pay after 3 years and 6 months?
10. Maria can afford a $325 per month car payment. She can get a loan at 5.25% interest for 6 years compounded monthly. What formula will you use to find the maximum price for the car she can afford? Write the formula in the space below. Write the variables and what they are equal to. a. b. Solve the problem. Round to the nearest hundredth.
Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) Leonora wants to have $17,750 in 1 year. Calculate how much she should invest now at 9% interest, compounded semlannually in order to reach this goal. O $8,142.20 O $16,227.76 O $16,254.21 O $16,985.69

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