How much interest on interest will she have earned

Assignment Help Finance Basics

Reference no: EM13257473

Elaine has just received an insurance settlement of $25,000. She wants to save this money until her daughter goes to college 4 years from now. If she can earn an average of 6.5 percent, compounded annually, how much interest on interest will she have earned by the time her daughter starts college? Assume she makes no further deposits or withdrawals.

Reference no: EM13257473

Questions Cloud

Compute the weighted cost of capital : This business is planning to pay an ordinary dividend at the endof the year of 18 cents, which is expected to grow at 5% per annum.The company rate of tax is 30%. Calculate the weighted cost of capital (WACC) (Show all working)

How many years will it take the firm to pay off this debt : Berkley Trucking recently purchased a new truck costing $147,800. The firm financed this purchase at 7.6 percent interest with monthly payments of $2,100. How many years will it take the firm to pay off this debt?

How much will you have in eleven years : You are scheduled to receive $7,500 in three years. When you receive it, you will invest it for eight more years at 7.5 percent per year. How much will you have in eleven years?

Views of christianity found in confessions : Describe a specific aspect you see in the art and/or architecture of Ravenna that reflects Augustine’s views of Christianity found in Confessions and The City of God.

How much interest on interest will she have earned : how much interest on interest will she have earned by the time her daughter starts college? Assume she makes no further deposits or withdrawals.

Explain never charged for electricity consumption : Charged itself for electricity consumption. The newly employed comptroller of CherokeeHills seeks your advice in this regard. What is your response?

Explain the heat required to melt one mole of the solid : The molecular weight of X is 65.0 g/mol. The heat required to melt one mole of the solid phase is 20.0 kJ, the heat required to sublime one mole of the solid phase is 40.0 kJ, and the heat required to vaporize one mole of the liquid phase is 30.0 ..

Personal expenses on a variable and fixed basis : How do variable costs and fixed costs differ? Give an example of each. Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to change?

Use routh table to find imaginary crossing points : G(s)= K(s-2)(s-4) / s(s+5) Sketch the root locus and find the following: a) Break away and break in points b) The jw-axis crossing points c) The range of gain to keep system stable

User Account

All Pages