Question
An investor places $13,525.00 in an account that pays 10.00% APR with semi-annual compounding. Find the value of the account in: 3 years? Submit
An investor places $13,525.00 in an account that pays 10.00% APR with semi-annual compounding. Find the value of the account in: 3 years? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint After being drafted in the first round of the NFL draft, a star defensive end invests his signing bonus of $13,167,500.00 in a mutual fund. The fund pays on average 8.04% APR with monthly compounding. The player will not touch this money until he retires from the league in 10.00 years. How much will this "nest egg" be worth when he retires? Submit Answer format: Currency: Round to: 2 decimal places. A very careful new father wants to set money aside for his baby daughter's wedding. If the wedding will take place in 26.00 years, he expects the wedding will cost $109,400.00. If the father can earn 8.00% APR with quarterly compounding on his investments, how much does he need to invest today to reach his goal? Submit Answer format: Currency: Round to: 2 decimal places.
Step by Step Solution
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Step: 1
To find the value of the account after 3 years with semiannual compounding we can use the formula A ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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