R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the investment matures. R6 000 is subtracted to the investment and the money is reinvested for a period of 7 years at 7.5% p.a.(cc). At the end of the investment period the investment is worth R 397 706.79 At what initial interest rate was the money invested? Answer the question by completing the answer boxes below. N for the first investment period: Initial interest rate for the first investment: % Present Value for second investment (round your answer to 2 decimal places): R

R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the investment matures. R6 000 is subtracted to the investment and the money is reinvested for a period of 7 years at 7.5% p.a.(cc). At the end of the investment period the investment is worth R 397 706.79 At what initial interest rate was the money invested? Answer the question by completing the answer boxes below. N for the first investment period: Initial interest rate for the first investment: % Present Value for second investment (round your answer to 2 decimal places): R

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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Find the accumulated value of an investment of $10,000 for 3 years at an interest rate of 5.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.)
An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?
Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 7 years? USe A = P (1+r/n)nt a59.289.00 b. S6,794.00 c. $11.245.00 d. $2.296.00
Find the accumulated value of an investment of $15,000 for 4 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. a. What is the accumulated value if the money is compounded semiannually?
What are the future value and the interest earned if $3800 is invested for 7 years at 8% compounded quarterly? (Round your answers to the nearest cent.) Give typing answer with explanation and conclusion
If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1,281.60 The difference between the present and future worth of money at some time in the future is called A. Discount B. Deduction C. Inflation D. Depletion
An investment of $7000 at 3% is compounded semiannually for six years. Find the future value and compound interest. Use the $1.00 future value table or the future value and compound interest formula. Click here to view page 1 of the future value table. Click here to view page 2 of the future value table. The future value of the investment is S (Round to the nearest cent as needed.) The compound interest is S (Round to the nearest cent as needed.)
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)
9. An investment of P2, 500 is made at the end of each year with interest of 2. 5% compounded annualy. a. Determine the equal payment series coumpound amount factor after 8 years b. Determine the total amount of the investment after 8 years. c. How long (in years) will it take for the investment to amount P59, 865. 00?
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Click the icon to view some finance formulas. c. What is the accumulated value if the money is compounded monthly? $ 16127.15 (Round to the nearest cent as needed.). d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.) ▼ X
You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?

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