Define who will have more money at the end of the year

Assignment Help Finance Basics
Reference no: EM131996209

Question: Martha and Martin are 25-year-old twins. Martha makes $1, 000 end-of-year payments into her investment portfolio for 10 years and makes no payments after the end of the tenth year. martin makes no payments for the first ten years, but he makes $1, 000 end of year payments starting at the end of the 11th year and continuing through the end of the 40th year. Both martin and Martha earn 8% on their portfolio. who will have more money at the end of the 40th year?

Reference no: EM131996209

Questions Cloud

Write the nuclear equation for reaction : Write the nuclear equation for this reaction and identify the other particle.
Molecule a carbohydrate : The molecular formula for lactic acid is C3H6O3, and its structural formula is CH3CH(OH)COOH. Is this molecule a carbohydrate? Explain.
What is the colorless gas : A 2.50-L sample of a colorless gas at STP decomposed to give 2.50 L of N2 and 1.25 L of O2 at STP. What is the colorless gas?
What would be few of your financial priorities : If you were on the Sports Commission of an NCAA basketball tournament host city, what would be a few of your financial priorities?
Define who will have more money at the end of the year : Martha and Martin are 25-year-old twins. Martha makes $1, 000 end-of-year payments into her investment portfolio for 10 years and makes no payments.
Determine the requirements for trading : Analyze three online trading sites, and determine the requirements for trading, including the price per trade.
Calculate the npv and irr of the investment : Mary's Little Lamb, Inc. is analyzing the proposed purchase of a new machine for $2,000,000. The proposed machine has an estimated economic life of four years.
What the equation tells us about the reaction : Also if you could, please explain how you developed the equation, and specify what the equation tells us about the reaction?
What is mary annualized holding period return : Mary purchased 100 shares of Harley Davidson Co stock at a price of $75 35 six months ago She sold all stocks today for $76 04 During this period the stock paid

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing annuity

Computing annuity payment: John Harper has borrowed $43,000 to pay for his new truck. The annual interest rate on the loan is 4.5 percent, and loan needs to be repaid in five years. What will be his annual payment if he begins his payment beginning..

  Compute the cost of common equity

Cost of Common Equity and WACC Palencia Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock.

  What is the firm price-earnings ratio

A firm has net income of $198,500 and total equity of 1.15 million. There are 220,000 shares of sock outstanding at a price per share of $14.80. What is the firm's price- earnings ratio?

  What is the best method to detect fraud

Explain the three major categories of occupational fraud and according to Mr. Wells, what is the best method to detect fraud? What types of companies are hit the hardest by occupational fraud?

  Include depreciation and working capital

include depreciation and working capital in the following NPV analysis, because depreciation for the machinery goes for longer than the project timeline, and working capital needs to be accounted for as a percentage of sales.

  What is the price of the call option

The underlying stock price is $85, and the stock's return has a standard deviation of 20 percent per year. The risk-free rate is 4 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call option?

  Discuss the revenues and expenses

Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance.

  Operating room 2657 080 80 anesthesiology 293 080 80 lab

your hospital has been approached by a major hmo to perform all their ms-drg 470 cases.they have offered a flat price

  What is the operating cash flow for this project

The applicable tax rate is 32 percent. What is the operating cash flow for this project?

  Which project would you choose for your company

Project A's NPV data equals the Net Operating Cash Flows of -$4,919,284, the Internal Rate of Return (IRR) demonstrates that the risk of the project is 5.36%.

  What is the price-earnings ratio

The Green House has a profit margin of 5.6 percent on sales of $311,200. The firm currently has 15,000 shares of stock at a market price of $11.60 per share. what is the price-earnings ratio?

  Outline the tax consequences

For an operating distribution, outline the tax consequences (amount and character of recognized gain or loss, basis in distributed assets) of the distribution to Timothy.

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