Calculating annuity values

Assignment Help Financial Management

Reference no: EM131315742

Calculating Annuity Values. If you deposit $5,000 at the end of each year for the next 20 years into an account paying 9.6 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?

Reference no: EM131315742

Questions Cloud

Considering paying off this high interest rate loan : Eric borrowed money last year to buy a new car for his part-time consulting work. The loan is a 3-year loan with 36 monthly payments. Due to his bad credit history, the loan he got is with a 12% annual interest rate compounded monthly. If Eric saved ..

Find the triangular arbitrage profit : Find the triangular arbitrage profit (in dollars) for someone that has access to 1 million dollars. Based on the information in the previous question, the yen will appreciate against the dollar to eliminate the arbitrage opportunity.

Evaluating new pension standards : Evaluating New Pension Standards. In July, 2012, GASB issued two new statements, GASBS Nos. 67 and 68, related to governmental pension reporting. compares and contrasts the old and new standards.

Calculating perpetuity values : Calculating Perpetuity Values. Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 6 percent, how much will you pay for the poli..

Calculating annuity values : Calculating Annuity Values. If you deposit $5,000 at the end of each year for the next 20 years into an account paying 9.6 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 y..

How much money can he make via triangular arbitrage : A hedge fund manager has $1,000,000 to invest in the foreign currency market. The dollar-euro exchange rate is quoted as $1.60/ € and the dollar-pound exchange rate is quoted at $2.00/£. If a bank quotes a cross rate of €1.20/£, how much money can he..

About the sell certain land : Roberta offers to sell certain land to Emily for $10,000. This offer is made by a letter, signed by Roberta and mailed on March 1, 1990. The letter also stated that the offer would be kept open until July 1, 1990. Discuss in detail whether there is a..

Net present value is sum of all present-future cash flows : Weir Inc. is considering a project that contributes $12,000 at the end of the first year and $7,000 at the end of the second year? The initial cost of the project is $12,000 (negative cash flow!). What is the net present value of the project at a 10%..

Net-zero type of transaction : Some argue that the actions of the Fed since 2008 have been a net-zero type of transaction (i.e. has had no effect on yields). In a few short sentences detail one argument that it is a net-zero type of transaction, and one counter-argument to this.

User Account

All Pages