Assuming the account earns rate of return

Assignment Help Financial Management

Reference no: EM131855700

Two years ago, the Fun Center deposited $3,200 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $5,000 to this account. It plans on making a final deposit of $3,500 to the account next year. How much will be available when it is ready to buy the equipment, assuming the account earns a rate of return of 6.85 percent?

Reference no: EM131855700

Questions Cloud

Future and present value of an annuity due : what is their future value if the compounding rate is 11.25 percent APR? What is the present value of this annuity?

Present value of an ordinary annuity : (Present value of an ordinary annuity). What is the present value of $3500 per year for 8 years discounted back to the present at 10%?

Calculate the roe for the firm : DuPont Analysis. You are considering investing in Nuran Security Services. Calculate the ROE for the firm.

Resulting return on asset-funder investment for two firms : Calculate the income available to pay the asset funders (the debt holders and stockholders) and resulting return on asset-funders' investment for the two firms.

Assuming the account earns rate of return : How much will be available when it is ready to buy the equipment, assuming the account earns a rate of return of 6.85 percent?

Calculate best-case and worst-case NPV figures : We are evaluating a project that costs $768,000, has a six-year life, and has no salvage value. Calculate the best-case and worst-case NPV figures.

Considering two mutually exclusive investments : Gardial Fisheries is considering two mutually exclusive investments. what is the discounted payback period for these two projects?

How much will be available when it is ready to buy equipment : How much will be available when it is ready to buy the equipment, assuming the account earns a rate of return of 6.85 percent?

What is the regular payback period for these two projects : What is the regular payback period for these two projects? What is the profitability index for each project if the cost of capital is 12.

User Account

All Pages