Jones can deposit $5,000 at the end of each six-month period for the next 12 years and
Question:
Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually. What will the value of the investment be after 12 years? If the deposits were made at the beginning of each period, what would the value of the investment be after 12 years?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Find the future value of 24 deposits of 5000 made at the end of each 6 months Deposits will earn an ...View the full answer
Answered By
Arun kumar
made more than four thousand assignments
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Question Posted:
Students also viewed these Business questions
-
A saving system yields $5,000 at the end of the first six months, and a further $1,000 increase every six months for a total of 5 years. Find the equivalent amount A, at the end of each six month...
-
You would like to have $ 50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7 percent interest compounded annually. Your first...
-
Mr. Sam K. Jones, a successful businessman, is considering erecting a small building on a commercial lot he owns very close to the center of town. A local furniture company is willing to lease the...
-
The position of a particle moving along 12t2 2t, where r is in meters and t is in an r-axis is given by x = seconds. i Determine the acceleration of the particle at t = 3.0 s. ii What are the...
-
The Mary Ellen Hospice provides services for terminally.ill patients and their families. The hospice provides an accommodation unit for up to six patients and a support service for outpatients, in...
-
Does it ever seem to you that the weather is nice during the work week, but lousy on the weekend? Cerveny and Balling (1998) have confirmed that this is not your imagination-pollution accumulating...
-
According to the National Education Association (NEA), teachers generally spend more than 40 hours each week working on instructional duties. The following data show the number of hours worked per...
-
Wilkinson Company established a $100 petty cash fund on August 1. On August 31, the fund had $7 cash remaining and petty cash receipts for postage $31, office supplies $42, and miscellaneous expense...
-
A European call with strike $58 and expiry in three months trades at $3. A put is offered on the same underlying with the same strike and expiry, for $1.50. The annual default-free discount rate is...
-
Assume the role of vice president of operations for Kolor Kosmetics, a small manufacturer in Biloxi, Mississippi. One of your colleagues from the local chamber of commerce, Dr. Andrea T. Mazzi, has...
-
What is the essential concept in understanding compound interest?
-
What general rule can be developed concerning maximum values and compounding intervals within a year? What is an equivalent annual yield?
-
Indicate how each of the following transactions or events would be reflected in a statement of cash flows prepared using the indirect method. Each transaction or event is independent of the others....
-
Two companies P Ltd. and Q Ltd. producing and selling similar products forecasted their Profits and Loss a/c for the next year, which is as follows: Calculate: (a) P/V ratio, break-even point, and...
-
At right is a simplified circular-flow diagram for the economy of Micronia. ( there is no investment spending and no transfers in Micronia.) a. What is the value of GDP in Micronia? b. What is the...
-
Using Figure 7-4, explain how the current weighting of the CPI index could lead to either over or understating the actual inflation rate for your household. Motor fuel 3.8% Recreation 5.7% Education...
-
Each year, The Economist publishes data on the price of the Big Mac in different countries and exchange rates. The accompanying table shows some data from 2007 and 2019. Use this information to...
-
Consider the first row of Figure 7-2 and suppose you mistakenly believed that total value added was $30,500, the sum of the sales price of a car and a cars worth of steel. What items would you be...
-
In Figure 31.9 we have a swapper in each round. What is the use of this swapper? Figure 31.9 64-bit plaintext DES 32 bits 32 bits 41 Initial permutation K1 Round I 48-bit f( R1. K ) K; Round i 56-bit...
-
Evaluate how many lines there are in a true rotational spectrum of CO molecules whose natural vibration frequency is w = 4.09 1014 s1 and moment of inertia I = 1.44 1039 g cm2.
-
An interest only mortgage is made for $80,000 at 10 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. a. What...
-
A mortgage loan is made to Mr. Jones for $30,000 at 10 percent interest for 20 years. If Mr. Jones has a choice between a CPM and a CAM, which one would result in his paying a greater amount of total...
-
A loan for $50,000 is made for 10 years at 8 percent interest and no monthly payments are scheduled. a. How much will be due at the end of 10 years? b. What will be the yield to the lender if it is...
-
On a particular day, there were 300 stocks that advanced on the NYSE and 800 that declined. The volume in advancing issues was 1000 and the volume in declining issues was 3000. What is the trin ratio?
-
A coupon bond that pays interest of $30 annually has a par value of $1000, matures in 6 years, and is selling today at $850. What is the yield to maturity on this bond?
-
A callable bond pays annual interest of $40, has a par value of $1000, matures in 4 years but is callable in 3 years at a price of $1100, and has a value today of $1020. What is the yield to call on...
Study smarter with the SolutionInn App