How much do need to save every year

Assignment Help Financial Accounting

Reference no: EM132813794

You have an older brother who plans to marry his long-time girlfriend after six (6) years. He estimated that he needs P500,000 for their wedding six years from now. He plans to save the same amount of money each year starting the end of this year in order to cover for the wedding expenses.

Problem 1: If he can invest his money in an instrument that yields 5% annually, how much do they need to save every year?

Reference no: EM132813794

Questions Cloud

What is the margin of safety in units : Assume sales volume of 6,000 units, unit selling price of $20, unit variable cost of $12, total fixed costs of $28,000. What is the margin of safety in units

Determine the size of the two replacement payments : Determine the size of the two replacement payments if interest is 7.8% compounded annually and the focal date is one year from now.

How much revenue should be recorded by FD : On June 1, Freedom Distributions (FD) shipped 100 TVs to Universal TV (UTV) on consignment. How much revenue should be recorded by FD

Which investment would prefer using the preset value method : Which investment would you prefer using the preset value method: one which could be expected to earn $50,000 in a lump sum two years from now

How much do need to save every year : How much do they need to save every year? You have an older brother who plans to marry his long-time girlfriend after six (6) years.

What the latest treatment approaches are : Present current research findings, what the latest treatment approaches are for the given neuropsychological concerns discussed in the chapter.

Calculate the cash flows and npv for the two cases : Gemini, Inc., an all-equity firm, is considering a $1.7 million investment that will be depreciated according to the straight-line method over its four-year lif

Determine carrying amount of the building as of December : Determine Carrying amount of the building as of December 31, 2021 if sum of the years' digit method was used to depreciate the asset

How do solve for the net present value of the year : Solve for the Net Present Value of the year. Based on your research, you will be needing an initial capital of P50,000. Show your solutions.

User Account

All Pages