Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her money into an account earning 7.25% interest compounded continuously, how much should she invest now, so that she will have $ 4500 in 7 years? Payment amount =

Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her money into an account earning 7.25% interest compounded continuously, how much should she invest now, so that she will have $ 4500 in 7 years? Payment amount =

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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Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her
money into an account earning 7.25% interest compounded continuously, how much should
she invest now, so that she will have $ 4500 in 7 years?
Payment amount =
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C) flat D) inverted 4. Ali is saving for a downpayment to buy a house. He deposits a fixed amount every quarter in a mutual fund that earns an APR of 10.0% in average. If his account calculates returns quarterly then how much should he deposit each quarter in order to have $50,000 in the account in five years' time? A) $2,280 B) $1852 C) $2,045 D) $1,957 5. Two years ago you purchased a new MPV for $50,000. You financed your MPV for 60 months at 6.15% APR (with payments made at the end of the month). You have just made your 24th monthly payment on your MPV. Assuming that you have made all of the first 24 payments on time, what is the outstanding principal balance (rounded to the nearest dollar) on your MPV loan? A) $17,818 B) $34,925 C) $31,818 D) $23,283
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