Every month on printing and mailing costs

Assignment Help Financial Management

Reference no: EM131975766

A rich aunt has promised you $3,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 5% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 5% , what is her promise worth today? The present value ----------

1. uppose you currently have $4,600 in your savings account, and your bank pays interest at a rate of 0.52% per month. If you make no further deposits or withdrawals, how much will you have in the account in 44 years? In 44 years' time, you will have $ ----------in the account

2. Suppose you currently have $5,000 in your savings account, and your bank pays interest at a rate of 0.5% per month. If you make no further deposits or withdrawals, how much will you have in the account in 55 years? In 55 years' time, you will have $------------ in the account

3. Your firm spends $5,000 every month on printing and mailing costs, sending statements to customers. If the interest rate is 0.5% per month, what is the present value of eliminating this cost by sending the statements electronically? This cost has a present value of ------------

Reference no: EM131975766

Questions Cloud

Prepare to begin realizing their home purchasing goal : What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchasing goal?

Pursues niche differentiation strategy : Give an example of a company that pursues a NICHE (FOCUSED) DIFFERENTIATION strategy.

What do results tell you about viability of your proposal : Calculate the selected ratios and articulate the results using accurate terminology. What do the results tell you about the viability of your proposal?

Indifferent between two forms of payment : what final payment will the bank require you to make so that it is indifferent between the two forms of payment?

Every month on printing and mailing costs : Your firm spends $5,000 every month on printing and mailing costs, sending statements to customers.

Decided to pay for your living expenses using credit card : You have just entered an MBA program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment.

How expensive of dream car will he expect to be able : Given the graduate’s plans, how expensive of a “dream car” will he expect to be able to purchase in four years?

Financial statement will you utilize in making your proposal : What financial statements will you utilize in making your proposal, and how will you use these statements?

List of european stocks that are priced in euros : You have a list of European stocks that are priced in euros. Where can you go to format the prices in euros in Excel?

User Account

All Pages