Amount invested today 238,000 Annual rate of return 8.3% Years until maturity 21 You are thinking about retirement, and would like to compute how much you will have some time in the future. Using the data from above, please compute future amounts, and then answer these questions: #1 How much MORE will you have if compounding is monthly rather than annually? #2 How much MORE will you have if compounding is daily rather than monthly? A Between 4,000 and 10,000 B Between 10,000 and 12,000 C Between 12,000 and 14,000 D Between 14,000 and 20,000
Amount invested today 238,000 Annual rate of return 8.3% Years until maturity 21 You are thinking about retirement, and would like to compute how much you will have some time in the future. Using the data from above, please compute future amounts, and then answer these questions: #1 How much MORE will you have if compounding is monthly rather than annually? #2 How much MORE will you have if compounding is daily rather than monthly? A Between 4,000 and 10,000 B Between 10,000 and 12,000 C Between 12,000 and 14,000 D Between 14,000 and 20,000
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 9PROB
Related questions
Question
Compoundin g | ||||||||
Amount invested today | 238,000 | |||||||
Annual |
8.3% | |||||||
Years until maturity | 21 | |||||||
You are thinking about retirement, and would like | ||||||||
to compute how much you will have some time in | ||||||||
the future. | ||||||||
Using the data from above, please compute future | ||||||||
amounts, and then answer these questions: | ||||||||
#1 How much MORE will you have if compounding is | ||||||||
monthly rather than annually? | ||||||||
#2 How much MORE will you have if compounding is | ||||||||
daily rather than monthly? | ||||||||
A Between 4,000 and 10,000 | ||||||||
B Between 10,000 and 12,000 | ||||||||
C Between 12,000 and 14,000 | ||||||||
D Between 14,000 and 20,000 | ||||||||
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