How much does the bluebird company need to deposit today

Assignment Help Financial Management

Reference no: EM13934658

The Bluebird Company has a $10,000 liability it must pay three years from today. The company is opening a savings account so that the entire amount will be available when this debt needs to be paid. The plan is to make an initial deposit today and then deposit an additional $2,500 a year for the next three years, starting one year from today. The account pays a 3% rate of return. How much does the Bluebird Company need to deposit today?

Reference no: EM13934658

Questions Cloud

What is the price-earnings ratio of the company : No-Growth Industries pays out all of its earnings as dividends. It will pay its next $3 per share dividend in a year. The discount rate is 16%. What is the price-earnings ratio of the company?

Python program that first displays a main menu : That is, if the total sale amount is $100 then the discount will be $0. However, if the total sale amount is $101 then the discount will be $0.10. If the total sale amount is $500 then the discount will be $40, but if the total sale amount is $501..

Information on states of the economy and stock returns : Use the following information on states of the economy and stock returns to calculate the standard deviation of returns.

How could this mutant phenotype result : A mutant strain of E.coli has constitutive expression of the trp operon. How could this mutant phenotype result? Ideas are explained.

How much does the bluebird company need to deposit today : The Bluebird Company has a $10,000 liability it must pay three years from today. The company is opening a savings account so that the entire amount will be available when this debt needs to be paid. The plan is to make an initial deposit today and th..

Prepare a journal entry to record overhead applied to jobs : Prepare a journal entry to record overhead applied to jobs.

Returns given the various states of the economy : The stock of Uptown Men's Wear is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? Probabilities: Recession:0.4 Normal:0.4 Boom:0.2 Returns: Recession:-11% Normal:12% Boom:2..

Cost of new common stock-depending on taxes-flotation costs : The cost of retained earnings can be less than, equal to, or greater than the cost of new common stock, depending on taxes, flotation costs, investors’ attitudes, etc. If a company uses the same discount rate to evaluate all projects,

Design application using server controls : The name of your Web site should be based on your last name.

User Account

All Pages