Question

In: Finance

You have set up an investment that pays 5% compounded quarterly but requires deposits of $1,000...

You have set up an investment that pays 5% compounded quarterly but requires deposits of $1,000 at the beginning of each quarter period for 4 years. How much will you have in the account in 4 years?

The account will be worth $ in 4 years?  (Round to 2 decimal places.)

Solutions

Expert Solution


Related Solutions

a)         Jasmine makes quarterly deposits of $1,000 into a savings account that pays 4 percent compounded...
a)         Jasmine makes quarterly deposits of $1,000 into a savings account that pays 4 percent compounded monthly. How much money will she have in her account in 25 years? Jasmine makes monthly deposits of $1,000 into an investment account that pays 4 percent compounded quarterly. How much money will she have in her account in 25 years? Gabriel deposits $1,000 at the beginning of each month into an investment account that pays 4 percent compounded monthly. How much money will...
Suppose you make equal quarterly deposits of $1,000 into a fund that pays interest at a...
Suppose you make equal quarterly deposits of $1,000 into a fund that pays interest at a rate of 12% compounded monthly. Find the balance at the end of year 3. (can you please sove it with excal and show the formales )
If you make 20 quarterly deposits of $1,000 beginning today and are earning 6% APR (compounded...
If you make 20 quarterly deposits of $1,000 beginning today and are earning 6% APR (compounded monthly), how much will the account be worth 20 quarters from today?
An investment firm (Firm A) pays 10% interest per annum, compounded on a quarterly basis. To...
An investment firm (Firm A) pays 10% interest per annum, compounded on a quarterly basis. To remain competitive, the investment manager of another firm (Firm B) is willing to match the interest rate offered by Firm A, but interest will be compounded on a monthly basis. What nominal rate of interest must Firm B offer to its clients?
Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How...
Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How many years will it take for the fund to double the investment?
If you make 30 semiannual deposits of $2000 into a fund that earns 10% compounded quarterly,...
If you make 30 semiannual deposits of $2000 into a fund that earns 10% compounded quarterly, how much money will be in the fund two years after the last deposit?
5. You have a bank loan at 6.75%, compounded monthly with quarterly payments. What is the...
5. You have a bank loan at 6.75%, compounded monthly with quarterly payments. What is the effective interest rate per payment period? 6. You lent $500 to your friend at 10% compounded every 2 months. You have asked her to pay the money back at the end of one year and to make an interest payment every six months (one at the 6 month mark and one at the end). What is the effective interest rate per payment period? 7....
Bank A pays 2% interest compounded annually on deposits, while Bank B pays 1.75% compounded daily....
Bank A pays 2% interest compounded annually on deposits, while Bank B pays 1.75% compounded daily. What would be the effective annual rate (EAR) that you would earn if you chose to deposit money in Bank B? Provide your answer in percentage format without using the % sign. Round to two decimal places.   To be marked correct, the answer provided needs to be +/- 0.01 from the actual answer.
Bank A pays 7% interest compounded annually on deposits, while Bank B pays 6% compounded daily....
Bank A pays 7% interest compounded annually on deposits, while Bank B pays 6% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is higher. You are indifferent between the banks and your...
Would you rather have a savings account that pays 5% compounded annually, or an account that...
Would you rather have a savings account that pays 5% compounded annually, or an account that pays 5% compounded monthly? Be sure to explain your position here.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT