9 Six months after graduation from college, Jennifer decided to start a savings account for graduate school. She researched her investment options and found the three options below. Option 1 2.99% APR Option 2 3.00% APR Option 3 3.01% APR compounded monthly compounded quarterly compounded semi-annually Make a recommendation on the option she should choose. Be prepared to explain your reasoning.

9 Six months after graduation from college, Jennifer decided to start a savings account for graduate school. She researched her investment options and found the three options below. Option 1 2.99% APR Option 2 3.00% APR Option 3 3.01% APR compounded monthly compounded quarterly compounded semi-annually Make a recommendation on the option she should choose. Be prepared to explain your reasoning.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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Carol wants to invest money in an investment account paying 4% interest compounding semi-annually. Carol would like the account to have a balance of $56,000 three years from now. How much must Carol deposit to accomplish her goal? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $28,000 $49,784 $49,726 $49,280
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 4%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much will she accumulate in three years by depositing $500 at the end of each of the next 12 quarters, beginning three months from now? (Round your final answers to nearest whole dollar amount.)
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 4%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much will Leslie accumulate in three years by depositing $500 at the beginning of each of the next 12 quarters? (Round your final answers to nearest whole dollar amount.)
Carol wants to invest money in an investment account paying 10% interest compounding semi-annually. Carol would like the account to have a balance of $53,000 three years from now. How much must Carol deposit to accomplish her goal? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
7 Olivia plans to make 25 annual contributions to a college saving account, with the first contribution to be made 1 year from today. There will be four annual withdrawals of $90753 starting at the end of year 22. Calculate the required size of the annual contributions if the interest rate is 2.04%." "11,625" "13,253" "13,186" "12,726" "12,775"
NOTE: Provide a format and show your work (example: N = 6, PV = XXX, I = X%, etc.) 1. Sam decides to start saving for retirement and she starts making $165 monthly contributions today and continue them for four years. What will Sam have at the end of the period if the compounding rate is 11.00 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2.What annual rate of return is earned on a $5,000 investment made in year 4 when it grows to $11,000 by the end of year 10? (Hint. Construct a timeline. Do not round intermediate calculations and round your final answer to 2 decimal places.) 3. Given an 8 percent interest rate, compute the present value of payments made in years 0, 1, 2, 3, and 4 of $1,500, $1,600, $1,200, and $1,600, respectively. Compute using NPV.
8. Your goal is to have a college fund for your child. Suppose you find a fund that offers an APR of 5% compounded monthly. Use Excel to create a table with months as the first column, payment in the second column and amount in account as the third. Use the table to determine how much should you deposit monthly to accumulate $85000 in 15 years.
1. Intermediate. Sydney is considering making a monthly investment for her son who will be five years old on his next birthday. She wishes to make payments until his 18th birthday and intends to pay £50 per month into an account yielding an APR of 12.68 per cent. She plans to start making payments into the account the month after her son’s fifth birthday. How much will be in the account immediately after the final payment has been made? a £18 847 b £18 377 c £17 606 d £18 610.
Solve on the paper onlys Q) At the end of year 5 Joe starts to withdraw $14500 from his savings account. If he takes out the same amount each year and the interest rate is 14%, what was Joe's initial investment assuming the account will be depleted at the end of year 25