Calculate the effective interest rate for yuni

Assignment Help Finance Basics
Reference no: EM132783017

Yuni is 27 years old and wishes to secure her future by saving $350 per week into an investment that pays 6.5% p.a. compounding weekly. She is looking forward to a career in Accounting and is hoping to work in the industry until she retires at age 55.

a) How much will Yuni have in retirement savings if he contributes the $350 at the end of each week? Show formula, variables, calculation and a concluding statement in your response.

b) How much will Yuni have in retirement savings if he contributes the $350 at the start of each week? Show formula, variables, calculation and a concluding statement in your response.

c) Explain why there is a difference between the two amounts determined in parts a) and b) above?

d) Calculate the effective interest rate for Yuni and explain what this number means.

e) Yuni wants to set up a college fund for her grandchild. She is aiming to be able to pass on $100 000 in 15 years' time. How much does Yuni need to set aside today into a college fund for his grandchild, assuming the fund earns 7.50% per annum?

Reference no: EM132783017

Questions Cloud

Determining the price per share : (a) If Walter's valuation formula holds, what will be the price per share when the dividend payout ratio is 40 percent?
Explain the importance of diversity awareness : Explain the importance of diversity awareness when encountering a client through self-reflection activity. Essay of two-four pages. The response must be typed.
What is the price of the bond that has a coupon rate : What is the price of the bond that has a coupon rate of 5%, a yield to maturity of 5.7%, a face value of $1000, and 15 years to maturity?
Prepare one schedule that discloses the individual costs : Prepare one schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of September 30, 2021
Calculate the effective interest rate for yuni : Yuni is 27 years old and wishes to secure her future by saving $350 per week into an investment that pays 6.5% p.a. compounding weekly.
What were the dividends paid by the firm in 2019 : The year-end 2018 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $2,000,000 and retained earnings at $4,300,000
What is the ending balance of the investment : What is the ending balance of the investment in equity instruments by the end of the current year under FIFO method
Calculate the expected return for rus ltd : Vladimir is a new investor and has been closely watching a company by the name of RUS Ltd., a pharmaceutical company aiming to develop a coronavirus vaccine.
How level of consciousness around identities : How did the readings/sources raise your level of consciousness around your identities, privilege and larger systems of oppression and your role in them?

Reviews

Write a Review

Finance Basics Questions & Answers

  Would this proposal eliminate the exchange rate risk

Using the information in the previous question, consider a proposal to price the exports to Mexico in U.S. dollars and use the U. S. source for raw materials. Would this proposal eliminate the exchange rate risk? Why or why not?

  Specification of the null and alternative hypotheses

for any specification of the null and alternative hypotheses, explain why you could make only a type I error or a type II error, but not both.

  What are the projected sales in years 1 and 2

Ogier Incorporated currently has $760 million in sales, which are projected to grow by 8% in Year 1 and by 5% in Year 2.

  Estimate exposure to the exchange risk

Suppose that you hold a piece of land in the city of London that you may want to sell in one year. As a U.S. resident, you are concerned with the dollar value o

  Calculate the nominal annual rate of interest convertible

Calculate the nominal annual rate of interest convertible monthly which is equivalent to 6.3% p.a. convertible quarterly.

  How much more will that amount be than the cash price

If John makes a down payment of $80 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $685?

  Determining marginal rate of return for keeping property

A property could be sold today for $2.5 million. It has a loan balance of $1 million and, if sold, the investor would incur a capital gain tax of $112,500.

  Represents the market portfolio

You are given following stock returns for M, X and Y over a seven year period. M represents the market portfolio, and X and Y are individual stocks. All returns are given as whole percents.

  Consider the project balances for a typical investment

"Consider the project balances for a typical investment project with a service life of four years.

  Evaluate competitiveness within the company industry

In Chapter 3, we learned Michael Porter's Five-Forces Model to evaluate competitiveness within the company's industry. Porter's five forces include

  Create a chart summarizing the details of the investment

Create a chart summarizing the details of the investment for both Bob and Lisa. Explain the results in terms of time value of money.

  Project proposal - capital budgeting techniques

Prepare a project proposal on this topic, please do it only 5 pages at the moment. Topic: Capital Budgeting Techniques. Research question: what capital budgeting contribute to better capital investment decisions

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!

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