How much does the business have to invest today

Assignment Help Accounting Basics
Reference no: EM133047110

Question - A business has a ten year plan and is hoping to invest in a high-growth fund that will supply $1750 at the end of every month for 7 years, with the first payment deferred for 3 years. How much does the business have to invest today to supply this fund if the interest rate is 7.1% compounded quarterly?

Reference no: EM133047110

Questions Cloud

Where is the most useful place to show a billboard : Where is the most useful place to show a billboard? The highway or in the city?
Relationship between employees and the organization : Few would argue that building and maintaining trust is important.
Destructive role of palm oil plantations : There has been intense concern over the past decade about the destructive role of palm oil plantations around the world, with environmental and human rights act
Find out what caused the stress : Talk to someone who has experienced stress at work (or use yourself as an example if you prefer).
How much does the business have to invest today : How much does the business have to invest today to supply this fund if the interest rate is 7.1% compounded quarterly
Managing a diverse team comprising members : You are managing a diverse team comprising members from India and USA. There is a lot of tension and misunderstandings arising from miscommunication
Problems and elaborations of the product : Choose a manufacturing product that in your opinion have an issue with quality. State a brief description of the product and company.
How much should Eric invest today : How much should Eric invest today at 4.00% compounded monthly in order to pay his son's rent of $500 at the beginning of each month for the next 4 years
What is the impact of using technology : What is the impact of using technology? Provide the link or references that you get the information.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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