Compute the annual beginning of-the-year payment

Assignment Help Accounting Basics
Reference no: EM133073248

Question - Charles estimated a minimum need of $200,000 for college education fund for his son in 17 years when his son will start college. Assume that after-tax rate of return that Charles is able to earn from his investment is 8.25 percent compounded annually. Charles has already earmarked $17,467 for his son education. He understands that this amount is not enough to finance his son education. He is going to invest additional amounts each year at the beginning of the year until his son starts college. Compute the annual beginning of-the-year payment that is necessary to fund the current deficit.

Reference no: EM133073248

Questions Cloud

Relationship between the interest rate : Suppose you want to model the relationship between the interest rate, the economic growth rate and the inflation rate. The first model you would fit is:
How many spa packages should rest inn budget for purchase : Purchases Budget - Rest Inn provides four-star accommodations for the vacation traveler. How many spa packages should Rest Inn budget for purchase
What is pretax cost of debt : Clifford, Inc., has a target debt-equity ratio of .95. Its WACC is 7.9 percent, and the tax rate is 25 percent.
What is ual cost of equity : What is UAL's cost of equity? What is UAL's cost of debt?
Compute the annual beginning of-the-year payment : Charles has already earmarked $17,467 for his son education. Compute the annual beginning of-the-year payment that is necessary to fund the current deficit
What is the proper amount of cross-purchase insurance : What is the proper amount of cross-purchase insurance that each partner will purchase?
Analyze the financing and ownership of a pre-ipo : Analyze the financing and ownership of a Pre-IPO and a Publicly Traded Corporation
Prepare an amortization plan for the loan : They offer you an interest rate of 7% annually, compounded annually to be paid in 4 years. Prepare an amortization plan for the loan
Access online data and processes : The primary purpose of Internet-connected devices has been to enable people to communicate with each other and access online data and processes

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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