Finance

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Mary needs \$9000 in 7 years. What amount can she deposit at the end of each quarter at 6% interest compounded quarterly so she will have her \$9000?

• Finance -

Part I:
As a financial planner a client comes to you for investment advice. After meeting with him and understanding his needs, you offer him the following two investment options:

Option 1 (refer to section on Mathematics of Finance in your text.): Invest \$23,000 in a savings account at 4.25% interest compounded quarterly.

Option 2 (refer to section on Mathematics of Finance in your text): Invest into an ordinary annuity where \$5,000 is deposited each year into an account that earns 6.6% interest compounded annually.

Set up the formula for compound interest for Option 1 and the formula for Future Value of an Annuity for Option 2 in an Excel spreadsheet to calculate the amount earned at the end of 5 years.

• Finance -

what is the future value of \$500 in a bank account for 10 years at 10% percent compounded bimonthly