Assume that the interest rate paid by the bank

Assignment Help Financial Management

Reference no: EM132054511

You plan to travel around the world 10 years’ from now. You estimate that you will need £59,000 and decide to start saving today. You will make your first deposit today and plan to make a total of 10 deposits into your savings account (including the one today).

If every deposit you make is an equally large sum, how big does that sum have to be in order for you to have £59,000 10 years from now?

Assume that the interest rate paid by the bank is 4.3 % and that you have to pay 30 % in taxes on interest gains.

Reference no: EM132054511

Questions Cloud

What does the beta of the second stock have to be : You want to construct a portfolio containing equal amounts of U.S. Treasury bills and two stocks. what does the beta of the second stock have to be?

Percent price change in bond due to both duration-convexity : Estimate the percent price change in the bond due to both duration and convexity.

Calculate the theoretical fair price for forward contract : Calculate the theoretical fair price for the forward contract.

Calculate the annualized rate of return for transaction : Explain who the borrower and lender of money are in this transaction. Calculate the annualized rate of return for this transaction

Assume that the interest rate paid by the bank : Assume that the interest rate paid by the bank is 4.3 % and that you have to pay 30 % in taxes on interest gains.

After-tax internal rate of return on equity invested : What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)? What is the first year debt coverage ratio?

Calculate the project standard deviation : Calculate the NPV and probability along each path. Calculate the project’s expected NPV. Calculate the project’s standard deviation.

Considering diversifying by purchasing insurance company : Greene is considering diversifying by purchasing an insurance company and a lumber company.

Decide between two different conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems.

User Account

All Pages