1. Assume that you will deposit $4000 at the end of each of thenext...

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Accounting

1. Assume that you will deposit $4000 at the end of each of thenext three years in a St. George bank account paying 8% interest.You currently have $7000 in the account. How much will you have inthree years? In four years?
2. You are looking into an investment that will pay you $12,000per year for the next 10 years. If you require a 15% return, whatis the most you would pay for this investment?
3. A bond has an 8% coupon, paid semi-annually. The face valueis $100, and the bond matures in 6 years. If the bond currentlysells for $91.137, what is the yield to maturity? What is theeffective annual yield?

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Answer to Question 1 Current balance 7000 Annual Deposit 4000 Interest Rate 8 Balance after 3 years 70001083 40001082 4000108 4000 Balance after 3 years 2180358 Balance after 4 years 2180358108 See Answer

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In: Accounting1. Assume that you will deposit $4000 at the end of each of thenext three...1. Assume that you will deposit $4000 at the end of each of thenext three years in a St. George bank account paying 8% interest.You currently have $7000 in the account. How much will you have inthree years? In four years?2. You are looking into an investment that will pay you $12,000per year for the next 10 years. If you require a 15% return, whatis the most you would pay for this investment?3. A bond has an 8% coupon, paid semi-annually. The face valueis $100, and the bond matures in 6 years. If the bond currentlysells for $91.137, what is the yield to maturity? What is theeffective annual yield?