Computing the amount of money

Reference no: EM13825860

Problem:

You are interested in saving money for your first house. Your plan is to make regular deposits into brokerage account which will earn 14%. Your first deposit of $5,000 will be made today. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10% a year. (That is, you plan to deposit $5,500 at t = 1, and $6,050 at t = 2, etc.) How much money will be in your account after 5 years?

Additional Information:

This question is basically belongs to the Finance as well as it discusses about computing the amount of money that could be saved by making a deposit of $5000 for five years.

Reference no: EM13825860

Questions Cloud

Types of activities reported in statement of cash flows : Distinguish among the three types of activities reported in the statement of cash flows. What are the major sources (inflows) of cash in a statement of cash flows? What are the major uses (outflows) of cash in a statement of cash flows?

Computing the equal annual payment : You are considering an investment in a 40-year security. The security will pay $25 a year at the end of each of the first 3 years. The security will then pay $30 a year at the end of each of the next 20 years.

10 kg of snow is covering : Temperature is -3 degree Celsius. 10 kg of snow is covering the driveway. How much of salt would you need to melt the snow on the driveway. (freezing point is 0 degree Celsius, I=2.1)?Please provide solution with all steps and also I made up the give..

Coupon bonds with semi annual payments and yield to maturity : The Rose Shoppe offers 10-year, 8 percent coupon bonds with semi annual payments and a yield to maturity of 8.24 percent. What is the market price of a $1,000 face value bond?

Computing the amount of money : You are interested in saving money for your first house. Your plan is to make regular deposits into brokerage account which will earn 14%. Your first deposit of $5,000 will be made today.

Discuss about the bystander effect : This problem related to Management and it discuss about the bystander effect. An example of a person who's having a heart attack across the street and a bystander's reaction to such a situation in terms of decision making process, keeping in mind ..

What is meant by increasing opportunity costs : The problem is belongs to Economics and it is about opportunity cost. This is a hypothetical problem about producing either wheat or lentils. Here opportunity cost is traced with producing additional units of wheat and explains about increasing op..

What kinds of ratios can compared that would cash balances : For our discussion, consider that a company has reported a cash balance of $4.5 million on their balance sheet. Sounds like a lot of money, right? What else do we need to know that helps us understand if this amount of money is enough or not enough a..

The manager of amedium-sized office : The manager of amedium-sized office hired a fire prevention specialist to give the annual fire training for their employees. In a pretest of the audience, the specialist said that lithium, sodium and potassium fires cannot be extinguished effectivel..

User Account

All Pages