What's the adjectives utility of $2,000 after 3 years if appropriate interest rate is 8%, compounded semiannually?
Any ideas?Answers: Semi-annually way that they pay you twice a year. This doesn't mingy 8% every time they pay out, but to some extent 4%, so that 8% is acheived after the year. So the initial amount invested increases only a total of 8%, not 16%. Also, compound interest add to the previous interest. Therefore:
Initial deposit: $2000
First payout: $2080
End of year one: $2163.20
First payout: $2249.73
End of year two: $2339.72
First payout: $2433.31
End of year three: $2530.64
Total: $2530.64
How often is semi annually?
the first time it compounds it will be worth
$2160 after
$2,332.8 and so on
$2,519.42
$2,720.98
$2,938.66
$3,192.56
If semi annually is 2 times a yr then i.e. how much it would be
2 000 * (1.04^6) = 2 530.63804
Pay $25,000 per year for 8 years for grease powerfully, made first recompense today - a unprejudiced return is 7% - selling price?
What's a good selling price for this grease well beneath these conditions? Anyone?Answers: Does this mean you total return is $200K or $225K?
I took this to mean that you would settle up $200K $25K and 7 more $25K payments.
Since you say you making the first grant at the begining of the years instead of at the end of the year, I assuming that I should total N at 7% for 7 years and add $25K to N.
If I do this, I find $169,162 present value
Now, if you use a Basic Investment (Growth and Contributions) calculator, you procure about $272K for the adjectives value ($25K next to 7 more payments) and the works out to $169K for present value using the present helpfulness calculator.
Im 15 what stocks should i buy??
i have roughly 2000 dollars and i would like to invest surrounded by stocks it dosent have to be something that make money fast. I obligation something that can grow over 10 or 15 yearsAnswers: At $2000, you might be better off surrounded by an index fund or ETF for diversification. (If you plunk the $2K down on one single company, you will concentrate your bet and increase the risk of failure.)
For mutual funds, try the Vanguard S&P 500 index fund or the total flea market fund. You can buy them directly from http://www.vanguard.com
If you want ETFs instead, buy something like the S&P 500 ETF (SPY) or the Total Market ETF (VTI). You'll own to get a brokerage information to buy them.
Oh, and my sincere congratulations on thinking about investing near a long-term strategy -- excellent!
apple and G00GLE.
drys- it is down low right now would be a right time to buy any of these actually
I suggest Sony, Microsoft and Nintendo.