How much interest generated

Assignment Help Financial Management
Reference no: EM131906758

(Future value) a person wishes to deposit $10,000 per year in a savings account which will generate an interest of 8% per year capitalized annually. suppose that a first deposit is made a the end of the first year and addtional depsoits each addtional yeart .

A) what is the sum at the end of the 10th year?

B) and how much interest generated?

Please explain

Reference no: EM131906758

Questions Cloud

Cell cycle are risky and leave the cell vulnerable : What events in the cell cycle are risky and leave the cell vulnerable? What events or changes could lead to inducing unrestricted growth like cancer?
Determine? the current mortgage payment : determine? the current mortgage payment?, the total interest? paid, the payment after the first adjustment.
What are the characteristics of your leadership style : What are the characteristics of your leadership style? In what type of situations would your leadership style be most effective?
Calculate the theoretical ex-rights price of ordinary share : Victory Ltd is a manufacturing company wishing to expand their operations. Calculate the theoretical ex-rights price of an ordinary share in Victory Ltd
How much interest generated : what is the sum at the end of the 10th year? how much interest generated?
Describe specific actions that you would take : Describe specific actions that you would take. It might be helpful to consider your own community and personal strengths when solving this learning experience.
The net present worth from investing in the stock : What is the variance of the net present worth from investing in the stock.
Representing different equity investment styles : Consider four different stock market indexes representing different equity investment styles: Large-cap, Value: Russell 1000 Value (FRUS1VA) Large-cap, Growth:
Evaluating capital investment projects : As a manager evaluating capital investment projects, what hurdle rate of return is appropriate to use when calculating NPV and under which circumstances?

Reviews

Write a Review

Financial Management Questions & Answers

  Preferred stock generally has a higher component cost

Preferred stock generally has a higher component cost of capital to the firm than does common stock. By law in most states, all preferred stock must be cumulative, meaning that the compounded total of all unpaid preferred dividends must be paid befor..

  Firm have to wait before expanding its operations

Org X estimates its expansion cost at $18.63 million and wants to fully fund upfront. Management has decided to save $1.1 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on its savings. How long does the firm ha..

  Explain difference between bid and ask from your perspective

Explain the difference between bid and ask from your perspective.

  Company estimates its cost of vendor financing

A company estimates its cost of vendor financing (using its vendor as its banker) is 12.2%.

  What is the share price of your firm

The firm you are CEO if has a current period cash flow of 2.1 million and pays no dividend. The present value of the company’s future cash flows is $17.5 million. The company is entirely financed with equity and there are 500,000 shares outstanding. ..

  Convert the projected franc flows into dollar flows

You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 21 million. The cash flows from the project would be SF 5.9 million per year for the next five years. The dollar required ..

  How a bond can be classified as a fixed-income security

Explain how a bond can be classified as a fixed-income security when the yield to maturity can fluctuate significantly over time, depending on the market price of the bond.

  Honor terms of the indenture prohibiting the corporation

If a bond issuer failed to honor terms of the indenture prohibiting the corporation from merging with another corporation. The impact of inflation as it relates to a bonding arrangement is most devastating to.

  Determine the net effect of plan on blawnoxs pretax profits

The company also expects its inventory investment to decrease by $1 million due to the anticipated decrease in sales. Determine the net effect of this plan on Blawnox's pretax profits.

  Is it possible to construct a truly risk-free portfolio

Is marketing geared more towards consumers or the buyers? Is it possible to construct a truly risk-free portfolio?

  Bid price represents financial break-even level for project

Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project.

  Preferred stockholders

Preferred stockholders a. do have preference over bondholders in the case of liquidation b. do not have preference over bondholders in the case of liquidation c. do not have preference over common stockholders in the case of liquidation d. two of the..

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