About the two investment accounts

Assignment Help Financial Management

Reference no: EM13919793

You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $1,050 payments and has an interest rate of 6.6 percent compounded monthly. Investment B is a 6.1 percent continuously compounded lump sum investment, also good for 14 years. How much money would you need to invest in B today for it to be worth as much as investment A 14 years from now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13919793

Questions Cloud

Designing a grocery delivery business : You are designing a grocery delivery business. Via the internet, your company will offer staples and frozen foods in a large metropolitan area and then deliver them within a customer-defined window of time. You plan to partner with two major food ..

Access point connectivity statistics collected : Minimum two paragraphs that summarizes your learning and concludes your accomplishments in the lab.

Process improvement to hotel management : You are now ready to present a process improvement to hotel management in the areas of focus (check-in, checkout, and hotel offerings). Individual Portion Complete the following:

Suppose stock had an initial price : Suppose a stock had an initial price of $72 per share, paid a dividend of $1.15 per share during the year, and had an ending share price of $81. Compute the percentage total return.

About the two investment accounts : You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $1,050 payments and has an interest rate of 6.6 percent compounded monthly. Investment B is a 6.1 percent continuously compounded lump sum i..

What is the adjusted mortality rate for black males : Health authorities in Savannah, GA reported that 22 injuries requiring hospitalization occurred in the city of 65,000 during St. Patrick's Day celebrations.. What was the prevalence rate of injuries requiring hospitalization on the holiday and fo..

Debt outstanding and total market value : Kaelea, Inc., has no debt outstanding and a total market value of $153,000. Earnings before interest and taxes, EBIT, are projected to be $9,500 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 perc..

How might a mnc use transfer pricing strategies : What costs are associated with inventory? Why is controlling turnover in the inventory important? How can improvements in inventory management affect profitability?

Immediate delivery of item it stocks for retail sale : A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic way.

User Account

All Pages