User Account

All Pages

Create schedule showing the cash inflows and outflows

Assignment Help Finance Basics
Reference no: EM132605016

(i) How much money will be available on Jennifer's 17th birthday?

Jim is going to establish a University Fund for his daughter Jennifer, who is two year's old. He plans to make the first deposit of $10,000 today and make another 5 annual deposits of this amount. After this, annual deposits of $15,000 will be made until Jennifer's 17th birthday. Given the long term nature of the investment, Jim anticipates an 4% pa return. The money is then to be transferred to an account for Jennifer on her 17th birthday and she will then withdraw the money in equal annual amounts for 6 years starting on her 18th birthday. Jennifer will only be able to earn 2% pa on her money.

(ii) Create schedule showing the cash inflows and outflows of this fund. How much will Jennifer be able to spend each year?

(Your answers should be accurate to the nearest dollar)

Reference no: EM132605016

Questions Cloud

Show how the business will report : Show how the business will report both current and long-term liabilities on its May 31, 2016 balance sheet. Do not enter dollar signs or commas in input boxes
Influence firms to use international strategies : What incentives influence firms to use international strategies?What are three basic benefits firms can gain by successfully implementing international strategy
Record the events for year in t-accounts : Wrote off a $300 account receivable that was determined to be uncollectible. Record the events for Year 1 and Year 2 in T-accounts
Profit or loss position of the futures transactions : A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over
Create schedule showing the cash inflows and outflows : Jim is going to establish a University Fund for his daughter Jennifer, who is two year's old. He plans to make the first deposit of $10,000
What is estimate of the stock current value : Assuming a required return of 11.00%, what is your estimate of the stock's current value?
Explain the three forms of the efficient market hypothesis : Explain the three forms of the efficient market hypothesis and discuss whether this fact violates any form of the efficient market.
Marketing plan-develop branding strategy : Develop a branding strategy for your product or service that covers the brand name, logo, slogan, and at least one brand extension.
How much is the original monthly repayment : Question 1 annual nominal rate of 3.6%pa compounded monthly. annual nominal rate of 2.8%pa compounded monthly.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  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

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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