Determining the duration of university course

Assignment Help Finance Basics
Reference no: EM132100994

Kristy has to make rental payments of $1,000 at the start of every month, throughout the fouryear duration of her university course. Her university fees are $4,000 to be paid at the start of each year. She earns $1,500 per month (paid at the end of each month) from a part-time job. Assume a quoted interest rate of 8% per annum with monthly compounding and that she keeps the part-time job for the next four years. How much money, in present value terms, can she withdraw each month for the next four years where withdrawals are at the end of each month?

Reference no: EM132100994

Questions Cloud

What is her weight while standing on earth : What is her weight while standing on earth? Express your answer to two significant figures and include the appropriate units.
What would the present value : What would the present value of $850 payment made in 10 years when the discount rate is 8%?
Write a program that uses a structure to store : It should ask the user how many test scores there are to be and how many students there are in addition to any that have been read (if any).
What is the formula for value of operations : What is the formula for value of operations using FCF and WACC?
Determining the duration of university course : Kristy has to make rental payments of $1,000 at the start of every month, throughout the fouryear duration of her university course.
Describe the duration gap for interest rate risk measurement : Describe the duration gap for interest rate risk measurement? Why duration a good approximation for interest rate risk?
Give a solution using the three stage decision making : Give a solution using the three stage decision making model developed to Herbert Simon together with the additional two stages of decision making.
How much work is done by the worker : A 125 kg mail bag hangs by a vertical rope 3.3 m long. A postal worker then displaces the bag to a position 2.2 m sideways from its original position.
How teresa could emphasize superordinate goals as strategy : Explain how Teresa could emphasize superordinate goals as a strategy to deal with the conflict in her department.

Reviews

Write a Review

Finance Basics Questions & Answers

  Suppose your credit card issuer states that it charges a

suppose your credit card issuer states that it charges a 15.00 nominal annual rate but you must make monthly payments

  Are the benefits of further education worth the associated

Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs?

  What is the operating cash flow for a sensitivity analysis

The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000?

  What is the standard deviation of the returns

A security has the following expected returns and probabilities of occurrence.

  What is the percent forward premium

You observe that the spot price of the Swiss franc (CHF) is 1.02 USD/CHF, and that the 1 year forward rate is 1.15 USD/CHF. What is the percent forward premium?

  What is the amount of the increase

Analysts that follow JPMorgan Chase, one of the nation's largest providers of financial services, estimate that the corporation's earnings per share.

  Concept that is not going anywhere anytime soon

How does this organization guard against a breach of your personal information? Provide at least two (2) examples and support them with evidence.

  What would be the third year future value

What would be the third year future value? (Round your answer to 2 decimal places.)

  Calculate the following for follies bookstore

Follies Bookstore, the only bookstore close to campus, had net income in 2005 of $90,000.Here are some of the financial ratios from the annual report. Using these ratios, calculate the following for Follies Bookstore.

  What is the cost of equity for the project

What is the country risk premium for Mexico and what is the cost of equity for the project?

  Stages in kotler and keller business buying process

1: Describe the stages in Kotler and Keller's business buying process.

  Company debt-to-equity ratio and equity multiplier

Conseco, Inc., has a debt ratio of 0.55. What are the company's debt-to-equity ratio and equity multiplier?(Round your answers to 2 decimal places, e.g.12.25.)

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