How many after-tax dollars will be accumulated

Assignment Help Finance Basics
Reference no: EM131925263

Question: (A) If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years?

(B) Studebaker can afford to have his annual income reduced by 3,052 after-tax dollars. How much is this before taxes? If these before-tax dollars are invested each year at 7%, how many after-tax dollars will be accumulated in 20 years?

(C) Redo part (B) assuming 8% is earned during years 1-10, 5% during years 11-15, and 7% during years 16-20.

Reference no: EM131925263

Questions Cloud

Compute the level of the firm accounts receivable : ABC has Days Sales Outstanding (DSO) of 10.1 days. Annual sales are expected to be 5,545,000. Using a 365 day year, compute the level of the firm's accounts.
Find pseudo-american option value : The risk-free interest rate is 0.6% per month, and the stock’s volatility (standard deviation) = 20% per month. Find the pseudo-American option value
Calculate the required return on microstrategy stock : Calculate the required return on MicroStrategy stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work.
What is the real rate of return for a us long-term bond : Assume that the inflation rate during the last year was 1.94 percent. US long-term bonds had the nominal rates of return of 5.57 percent.
How many after-tax dollars will be accumulated : If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years?
How much is olympia monthly lease payment on the tractor : The annual interest rate is 6%. How much is Olympia’s monthly lease payment on the tractor?
Considering replacing its swimming pool with new facility : A community is considering replacing its swimming pool with a new facility. Determine how many actual dollars in the 2060 will the gift be worth?
Examine the price fluctuation of agricultural products : The Agricultural Futures Exchange of Thailand was established in 2004 by the commerce ministry to help develop trading of futures contracts on rice, rubber.
Debt proceeds are used to repurchase equity : Assume debt proceeds are used to repurchase equity. Ignoring taxes, what will the company’s value be if it sells $33 million in debt?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculating compound interest to find balance in account

Use the appropriate compound interest formula to compare the balance in the account after the stated period of time.

  What is the current yield for about

Currently has a yield to maturity of 6.5%.  What is the current yield for Abbott?

  Which of the given would be a wash sale

Which of the given would be a wash sale?- You buy a stock at $30. Three weeks later, you sell the stock at $26. Two weeks later, you buy a call on the stock.

  Explain the information gleaned by the forensic scientist

Explain the information gleaned by the forensic scientist in the process

  Meaning in the context of the data

(a) What is the probability that a randomly chosen student leaving one of the main elevators weighs at least 68 kilograms to at most 90 kilograms? (b) Find the 80th percentile, and interpret its meaning in the context of the data.

  Find out expected observations and deviation

The observed frequencies are 891 Insured and Surgical, 316 Uninsured and surgical, 290 Insured and medical, 119 uninsured and medical. Find out expected observations and deviation.

  Assessing the value of the firm stock

Imprudential, Inc., has an unfunded pension liability of $600 million that must be paid in 23 years. To assess the value of the firm's stock.

  Distinguish between concurrent and predictive validity

Distinguish between concurrent and predictive validity. Do these terms refer to types of construct validity or criterion-related validity?

  Last year artworks inc paid a dividend of 350 you

last year artworks inc. paid a dividend of 3.50. you anticipate that the companys growth rate is 10 percent and have a

  Capital budgeting-beta and leverage

You are determining whether your company should undertake a new project and have calculated the NPV of the project using the WACC method when the CFO, a former accountant, notices that you did not use the interest payments in calculating the cash ..

  Guaranteed price on specified date of expiration

A call option gives the investor the right, but not the obligation, to purchase a stock at fixed/guaranteed price on specified date of expiration (Ehrhardt, 2017).

  Build the is-lm function

Build the IS-LM function and If we assume an increase in Investments by 100 units, calculate again the IS-LM functions.

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