Question: THE NEXT FOUR ( 4 ) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A real estate investor will make deposits at the end of each

THE NEXT FOUR (4) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A real estate investor will make deposits at the end of each period into an interest bearing account in
order to accumulate a sum to retire a mortgage bond. For each of the investments shown in the table
below, calculate the missing element.
For Investment A, what is the future value?
(1) $121,111.70
(2) $126,034.78
(3) $114,817.76
(4) $136,882.41
For Investment B, what is the investment period?
(1) Approximately 6 years
(2) Approximately 4 years
(3) Approximately 15 years
(4) Approximately 8 years
For Investment C, what is the size of the monthly deposit (rounded up to the next higher dollar)?
(1) $786
(2) $885
(3) $699
(4) $917
For Investment D, what is the interest rate (expressed as an effective annual rate) earned?
(1)9.128062%
(2)8.952142%
(3)6.221473%
(4)7.178908%
 THE NEXT FOUR (4) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!