
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose whether you want 12%
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- Suppose you have a different option to deposit $500 in a savings account at the beginning of each year for 5 years. How much would you have if the account paid 4.25%?arrow_forward2. If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account today? Assume that the annual interest rate is 10% compounded annually. Round your answer to the nearest one dollar.arrow_forwardYou want to have $10000 in five years. How much should you deposit today if the bank pays 4% monthly?arrow_forward
- Answer it carefully thanks!arrow_forwardSuppose you will need $43,000 in 21 years. If your bank compounds interest at an annual rate of 4%, how much will you need to deposit into your account 2 year(s) from now to reach your goal? Enter your answer rounded to two decimal places. Numberarrow_forwardA friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.)arrow_forward
- You think you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 10 percent interest. You currently have $7,000 in the account. How much will you have in 3 years? Respuesta:arrow_forwardYou put 8,293 in the bank for 11 years at 5% what factor would you use to calcuate the future value of your deposit?arrow_forwardHow much would your investment be worth if you deposited $5,555.55 into a bank that paid simple interest of 4% for 10 years?arrow_forward
- How much must you deposit in the bank today if you want to have $1,500 after 4 years? Interest rate is 11%, compounding is annual.arrow_forward1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2. How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 5. A deposit of $270 earns the following interest rates: 8 percent in the first year. 6 percent in the second year. 5 percent in the third year. What would be the third year future…arrow_forwardSuppose you borrowed $1,000 from the bank and the rate of interest was 5%. What would the simple interest be if the amount is borrowed for 1 year? Suppose you deposit $4,000 at a bank at a simple interest rate of 7.5% per year. How much money will you have in the bank after 10 years? Question 2: The following questions are related to Compounded Interest: You deposit $2000 in an account earning 3% interest compounded monthly. How much will you have in the account in 20 years? How much interest will you earn? How much would you need to deposit in an account now in order to have $6,000 in the account in 8 years? Assume the account earns 6% interest compounded monthly.arrow_forward
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