User Account

All Pages

Accumulate the required amount to buy the house

Assignment Help Finance Basics
Reference no: EM132494949

You plan to buy the house of your dreams in 7 years. You have estimated that the price of the house will be $82,310 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 4.31 percent, compounded monthly.

How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Round the answer to two decimal places.

Reference no: EM132494949

Questions Cloud

What are the ethical issues in this situation : Who are the stakeholders in this situation? What are the ethical issues in this situation? What would you do in this situation
Which rate of return does the investor expect to receive : The company pays $5.30 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchase
Prepare journal entries for the above transactions : On June 1, Jones Corporation issued 5,000 shares of $10 par value common stock for $18 per share. Prepare journal entries for the above transactions
What is the real rate of return for large-cap stocks : The rate of inflation during the last year was 2.03 percent. What is the real rate of return for large-cap stocks?
Accumulate the required amount to buy the house : How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?
What is the amount of depreciation for the first full year : Equipment with a cost of $357000 has an estimated salvage value of $17000, What is the amount of depreciation for the first full year
Find the present value of cash flows : To answer this question, you have to find the present value of these cash flows. Round the answer to two decimal places.
What is raleigh inc price per share : You have been tasked to determine whether Raleigh Inc.'s stock is fairly priced. Raleigh Inc. currently has EBIT of $5M, $10M of debt outstanding
Which system would be more economical : Assuming a 7% discount rate, which system would be more economical over the 20-year life? When would the two systems be equal in cost

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the basis value for saudi light crude

On Monday 10, the spot price for Saudi light crude oil stands at $85.2 a barrel, while the August futures contract for Saudi light crude stands at $86.32.

  What is going to happen to value of bond as time goes by

Consider the following bond: Face value = $1,000; coupon rate = 8%; yield to maturity = 5%; maturity = 5 years.

  What is the current price of the bonds

A for profit company has a series of $1000 par value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 6%.

  Difference between pension and postretirement benefits

What type of pension and other postretirement benefit plans the company offers to its employees? What are the reporting requirements for pension plans in the financial statements?

  Record the present-value factor at 10%

Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each year and compute the present-value cost of owning and the present value of leasing. Which alternative is more desirable at this interest rate?..

  You have just won the lottery and will receive 1000000 in

you have just won the lottery and will receive 1000000 in one year. you will receive payments for 30 years and the

  What is the annual rate of return on an investment

1. Your broker recommends that you purchase Good Mills at $30. The stock pays a $2.20 annual dividend, which (like its per share earnings) is expected to grow annually at 8 percent. If you want to earn 15 percent on your funds, is this stock a good b..

  Under option 2 the present value of all the annual lease

cedar hill hospital needs to expand its facilities and desires to obtain a new building on a piece of property

  Hamptons home of a famed socialite hits the market

"Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan - a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan's onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis..

  Corporate investment analysis

As a new analyst, you have computed the following annual rates of return for both Lauren Corporation and Kayleigh Industries. Your manager suggests that because these companies produce similar products,

  Question on international finance

Frizzell Corporation has 1,000,000 euros as receivables due in thirty days, and is certain that the euro will depreciate substantially over time. Suppose that the firm is correct,

  Effective annual interest rate on additional amount borrowed

What is the effective annual interest rate on the additional amount borrowed if you take the first loan?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd