Find the value of which he should deposit every month

Reference no: EM13202217

John is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

Reference no: EM13202217

Questions Cloud

Find the elasticity of demand for laptop computers : Suppose that over the past year, the price of laptop computers has fallen from $2,000 to $1,800. Over the same time period, sales to consumers have increased from 700,000 to 800,000 units. Calculate the elasticity of demand between these two point..

At what rate would the npv become zero : Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what rate would the NPV become zero What is such a rate called Also, calculate the payback periods, both simple and discounted at 15% per year.

How much money should robertson inc deposit today : Robertson Inc. wishes to set aside lump sum money to withdraw from and invest in automating parts of its business over the next 5 years. This money is expected to earn compound interest at the rate of 10% per year.

For what interest rates do prefer each payment plan : A business magazine is available for $58 for 1 year, $108 for 2 years, $153 for 3 years, or $230 for 5 years. Assume you will read the magazine for at least the next 5 years. For what interest rates do you prefer each payment plan

Find the value of which he should deposit every month : John is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years.

What is the difference in the profit-maximizing price : Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2. If MC is..

Describe the nonexclusion consumption concept : External Social Benefits: During recent years, professional sports have enjoyed an unprecedented boom all across the United States and Canada. Team revenues have skyrocketed with growing fan interest and attendance, thriving broadcast revenues.

How fast is the height of the water increasing : How fast is the height of the water increasing when the water has filled 2 feet of the deep end?

Why is the confidence that a recession will happen : If Congress wants to use fiscal policy to prevent a recession, suggest whether they should cut taxes if there is a suspicion of a recession, cut taxes when there is confidence that a recession will happen

User Account

All Pages