Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A father is now planning a savings program to put his daughter through college. She is 13, she plans to enroll at the university in 5 years, and she should graduate in 4 years. Currently, the annual cost (for everything-food, clothing, tuition, books, transportation, and so forth) is $15,000, but these costs are expected to increase by 5% annually. The college requires that this amount be paid at the start of the year. She nowhas $7,500 in a college savings account that pays 6%annually. Her father will make six equal annual deposits into her account; the first deposit today and the sixth on the day she starts college. Howlarge must each of the six payments be? [Hint: Calculate the cost (inflated at 5%) for each year of college and find the total present value of those costs, discounted at 6%, as of the day she enters college. Then find the compounded value of her initial $7,500 on that same day. The difference between the PV costs and the amount that would be in the savings account must be made up by the father's deposits, so find the six equal payments (starting immediately) that will compound to the required amount.]
a) Change the amount for college costs from $15,000 to $22,000b) Change the amount for inflation from 5% to 4%.c) Change the rate earned on the account from 6% to 7%.
Find out the formula we would employ to compute the effective interest rate offered on cash discounts?
Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, with zero salvage value.
What amount of gain has Patriot received from this transaction and this a capital or ordinary gain?
The Occupational Safety as well as Health Administration requires the firm to install new ventilating equipment in its plant, Theory Question regarding specific factors affecting firm's breakeven point
Computation of the standard deviation of the portfolio and What proportion of the portfolio is invested in the risky asset
Where should the line be drawn on what type of bids our country should accept from foreign countries to prevent threats to our national security?
Use the interest rate model to estimate market rates on the firm's debt securities of the following terms: 1 to 5 years, 10 years, and 20 years.
Calculate the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.
State whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have relatively high or low price-earnings ratio.
Computing the average real return for treasury bills and Calculate the average real return for Treasury bills over this period
What your be the yield on this strategy if there was an immediate decrease in interest rates by 100 basis points over the entire yield curve after you purchased the 6 month security.
Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd