Bill plans to fund his individual retirement account

Assignment Help Financial Management

Reference no: EM13874732

1. The present value of $25,000 perpetuity at a 14 percent discount rate is ___

A. $285,000

B. $178,571

C. $219,298

D. $350,000

2. Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year?

A. $144,104

B. $14,938

C. $19,292

D. $40,000

3. The present value of an ordinary annuity of $2,350 each year for eight years, assuming an opportunity cost of 11 percent, is _____

A. $12,093

B. $1,020

C. $27,869

D. $18,800

Reference no: EM13874732

Questions Cloud

When an investment is sunk and durable : When an investment is sunk and durable, why is it a mistake to assess the investment only on the basis of economic profits in the first year? What is a better criterion? Why?

Fatal level of hyperthermia : Hyperthermia of 5°C (i.e., 5°C rise above the normal body temperature) is considered fatal. Express this fatal level of hyperthermia in

Summarize the procedures used in the salem trials : Summarize the procedures used in the Salem Trials

Tutorials on relational database design : Conduct some research online for tutorials on relational database design. Choose three that you think do the best job of teaching you about relational database design. Share your findings with the class, and explain why you chose the three tutoria..

Bill plans to fund his individual retirement account : The present value of $25,000 perpetuity at a 14 percent discount rate is ___ Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent..

Process on a p-v diagram : Hydrogen is contained in a piston-cylinder device at 14.7 psia and 15 ft3. At this state, a linear spring (F 8 x) with a spring constant of 15,000 lbf/ft is touching the piston but exerts no force on it. The cross-sectional area of the piston is 3..

Under what circumstances are economic profits good indicator : Under what circumstances are economic profits a good indicator of market power? Explain why it is not possible to estimate the demand curve simply by fitting a line through annual observations on price and quantity.

Describe the prevention methods that you would implement : Describe the prevention methods that you would implement if domestic violence is not occurring, although you suspect that it could be. Describe the interventions that you would implement if you confirm that domestic violence is occurring

The rea data model : Explain to your senior management the risks and rewards of such of a move. Be sure to provide specific examples to support your response.

User Account

All Pages