Calculation of annual cash flow with a nominal rate

Assignment Help Finance Basics
Reference no: EM13827048

Problem:

You are looking to invest in a security that will provide an annual return of $38,000.  How much would you have to invest at a nominal rate of 8% to fund this annual cash flow?

Summary of question:

This question basically belongs to Finance as well as it explains about calculation of annual cash flow with a nominal rate of 8%. 

Reference no: EM13827048

Questions Cloud

Calculation of compounded interest rate for a deposit : Determine the value at the end of four years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compounded.
Record the transactions listed above in journal entry form : Seles Corporation’s charter authorized issuance of 100,000 shares of $10 par value common stock and 50,000 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is indepen..
Prepare the tax formula in a worksheet in column : Prepare the tax formula in a worksheet in column A. In column B next to each element of tax formula, show the lines on Form 1040 to which the tax formula line item links. Find a tax rate schedule for 2013. Input the values for the schedule into a MS ..
Influence on rates of pay provided to usa workers : Over the past decade, which factor has had the least influence on rates of pay provided to USA workers?         1. minimum wage       2. foreign competition       3. deregulation       4. leveraged buyouts and takeovers
Calculation of annual cash flow with a nominal rate : You are looking to invest in a security that will provide an annual return of $38,000.  How much would you have to invest at a nominal rate of 8% to fund this annual cash flow?
Show the likely short-term impact of the flood on the price : The assignment question economics, particularly to macroeconomics and it is explain about how the concepts of demand and supply interact and arrive at equilibrium prices of perishables such as fruits and vegetables.
Amount of cash flows from operating activities reported : Investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet. Purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Sold $250,000 of bonds at 97 plus..
Calculation of semi-annual compounded nominal interest rate : Find the value of $500 paid each 6 months for 5 years at a nominal (annual) rate of 14% compounded semiannually.
Deming profound knowledge consists of four elements : Deming's profound knowledge consists of four elements. Answer the following three parts relating to the system element of Deming's profound knowledge. Your discussion should relate to this element of Deming's profound knowledge and not systems in gen..

Reviews

Write a Review

Finance Basics Questions & Answers

  I interest is compounded continuously at a nominal rate

income from a project is expected to decline at a constant rate from an initial value of 500000 at time 0 to a final

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  Opportunities arising from the global financial crisis

Explain the major factors behind the collapse of the United State mortgage markets. What role, if any, did financial innovation play in collapse of the mortgage market that start in the summer of 2007?

  Find breakeven in dollars and units

Suppose you are selling crafts - candles you make at home and trade at art fairs. Your fixed costs are $5,000 per year. Every candle costs $2 to make and sells for $10.

  How much money do you need to put in the bank today

You need a new car and you want to pay off the loan in three years. Your budgeted monthly payment is $300. Will a car loan of $30,000 break your budget, assuming 5% annual interest? Please show your calculations.

  Informational interview

Informational Interview

  Top priority in most corporate agenda

The ability to meet humanity's needs without harming future generations is now a top priority in most corporate agenda

  Write an equation of the tangent line to the graph

Write an equation of the tangent line to the graph of y = f(x) at the point on the graph where x has the indicated value. f(x) = 2x^2-10/-3x-2, x =0

  What is the contribution margin per hour of molding time

The equipment has 4,050 hours of capacity per year. A sink uses an average of 2 hours of molding time; a tub uses and average of 5 hour of molding time.

  A couple wants to save 50000 to buy some land they can

a couple wants to save 50000 to buy some land. they can save 400 a month in an account paying interest of 8 p.a.

  A stocks expected dividend payment at the end of the year

a stocks expected dividend payment at the end of the year d1 is 1. the required rate of return is rs 11 and the growth

  What is the value of a stock dividends of 150 300 and 600

what is the value of a stock dividends of 1.50 3.00 and 6.00 constant growth at 4 and a required return of

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