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1. You would like $100,000.00 in a savings account after 30 years. Your savings account has an 8.5% interest rate, compunded quarterly. How much must
1. You would like $100,000.00 in a savings account after 30 years. Your savings account has an 8.5% interest rate, compunded quarterly. How much must you deposit in that account now to reach your goal ? Show all calculations.
2. What will the return on the investment be after the 30 years have passed ? Show all calculations.
3. You would like to purchase $5,000 worth of stock. You have found two brokers with the following fees. How much would broker A cost ? How much would broker B cost ?
Broker A- Charges a flat fee of $25.00 per trade
Broker B- Charges 1.5% per trade
4. You were able to buy 125 shares stock of Broker A. This is an incone stock that pays out a quarterly dividends of $0.35 per share. How much will you earn in dividends in the first year ? Show all calculations.
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