How many years will it take them to save up the amount

Assignment Help Financial Econometrics
Reference no: EM13329430

Ralph and Alice would like to have $22000 for a down payment on a house. Their budget only allows them to save $269.37 per month. How many years will it take them to save up the desired amount of $22000? Here we assume that their saving account will pay 12% compounded monthly.

Reference no: EM13329430

Questions Cloud

With the unemployment salary at an hourly rate : With the unemployment salary at an hourly rate of $7.25 do youbelieve that this helps our economy, does it hurt oureconomy? Should it be higher as there are other states andcountries that have a higher base salary for unemployment
Define the ph of the buffer after the addition of naoh : What is the pH of this buffer? pH = (b) What is the pH of the buffer after the addition of 0.56 mol of NaOH? (assume no volume change) pH = (c) What is the pH of the original buffer after the addition of 0.30 mol of HI? (assume no volume change) p..
What is the default risk premium on the corporate bond : A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%.
Evaluate the standard enthalpy of formation of gaseous : Calculate the standard enthalpy of formation of gaseous carbon dioxide (CO2) using the following thermochemical information: 2 C(s) + H2(g) C2H2(g) H = +226.8 kJ 2 C2H2(g) + 5 O2(g) 4 CO2(g) + 2 H2O(l) H = -2599.3 kJ 2 H2O(l) 2 H2(g) + O2(g) H = +..
How many years will it take them to save up the amount : Ralph and Alice would like to have $22000 for a down payment on a house. Their budget only allows them to save $269.37 per month. How many years will it take them to save up the desired amount of $22000
Compute operating income for rim and tip : Compute operating income for RIM and TIP, separately, and the total operating income for both and if the results in part 1 for TIP are typical, why do you believe RIM decided to sell off its interest in TIP?
Often it is claimed that banks create money by making loans : Often it is claimed that banks create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money?
Determine appropriate after-tax cost of new debt for triplin : Triplin Corporation's marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. After $12 per bond flotation costs, new bonds will net the company $966 in proceeds
Define what are the equilibrium partial pressures of hbr : At 5 oC the equilibrium constant for the reaction: 2 HBr(g) H2(g) + Br2(g) is KP = 2.80e-16. If the initial pressure of HBr is 0.00991 atm, what are the equilibrium partial pressures of HBr, H2, and Br2? p(HBr) = . p(H2) = . p(Br2) =

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How much additional equity financing is required for a year

XYZ Company is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,350, net fixed assets of $27,500, and 5 percent profit margin.

  Find how long will alex take for him to pay off the loan

Alex Karev has taken out a $180,000 loan with an annual rate of 8 percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month,

  Find how much should be prepared to pay for the stock

You believe that ABC company will pay a dividend of $2 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 6% per year into the future. If you require a return of 12 percent on your investment

  What is the maximum amount that a firm should consider

What is the maximum amount that a firm should consider paying for a project that will return $12000 annually for 6 years if the opportunity cost is 12%

  What is the total asset turnover and the capital intensity

Silas 4-Wheeler, Inc., has an ROE of 18.05 percent, equity multiplier of 1.60, and a profit margin of 18.80 percent. What is the total asset turnover and the capital intensity

  What is the price per share of the companys common stock

An oil company's resources are being depleted and known reserves are becoming scarcer. As a result, the company's earnings and dividends are declining at a rate of 3% each year.

  What will the after-tax cost of debt be when the loan is due

Tobin's BBQ has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 11%

  What is the capital budgeting process

What is capital budgeting, what is the capital budgeting process, what are the principles of capital budgeting and when do we make a capital investment?

  Find effective interest rate if discount is not utilised

Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lockbox arrangement

  What is the goal of common-size analysis

What does the financial analysis process reveal and what is the goal of common-size analysis

  What are the expected return and the standard deviation

When a deposit matures, Smith's policy is to relodge the whole sum (principle & interest) immediately for further period. He chooses the term of each deposit according to his assessment of the interest rates available at that time.

  Determine what is the cash flow to stockholders during 2014

Weiland Co. shows the following information on its 2014 income statement: sales = $157,000; costs = $81,100; other expenses = $4,400; depreciation expense = $10,100; interest expense = $7,600; taxes = $18,830; dividends = $7,600.

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