Q 19 A local furniture store is advertising a deal in which you buy a $2,200 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $2,200 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PRESENT VALUE? How much would you have to deposit in the savings account each month earning 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ANNUITY PAYMENT?
Q 19 A local furniture store is advertising a deal in which you buy a $2,200 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $2,200 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PRESENT VALUE? How much would you have to deposit in the savings account each month earning 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ANNUITY PAYMENT?
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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Q 19
A local furniture store is advertising a deal in which you buy a $2,200 dining room set and do not need to pay for two years (no interest cost is incurred).
How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $2,200 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
PRESENT VALUE?
How much would you have to deposit in the savings account each month earning 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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