How much money must robinson invest at the end of each years

Assignment Help Financial Management

Reference no: EM13928563

1. Mr. Jones bought a building for $60,000, payable on the following terms: a $10,000 down payment and 25 equal annual installment payments to include principal and interest of 10 percent per annum. Calculate the amount of the installment payments. How much of the first year's payment goes toward reducing the principal amount?

2. A firm purchases 100 acres of land for $200,000 and agrees to remit 20 equal annual end-of-year installments of $41,067 each. What is the true annual interest rate on this loan?

3. Susan Robinson is planning for her retirement. She is 30 years old today and would like to have $600,000 when she turns 55. She estimates that she will be able to earn a 9 percent rate of return on her retirement investments over time; she wants to set aside a constant amount of money every year (at the end of the year) to help achieve her objective. How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $600,000 at the end of that time?

Reference no: EM13928563

Questions Cloud

Improve the system of checks and balances : Prepare a two to three page briefing on the case that you reviewed in which you utilize the following areas of importance: a) issue presented; b) short answer; c) the facts of the case; d) a summary of the case; and e) a conclusion of the case out..

Are home depot facilities designed for logistics efficiency : If Home Depot does not use quality management procedures, what steps would you suggest they put in place in order to improve its logistics system?

Preparing a cash budget : Grenfell Company is preparing a cash budget for 2014 for purchases of Calvos. Budgeted data

Problem regarding the hospitality management segments : First, choose the segment of the Hospitality Industry that interests you the most: Foodservice, Lodging, Travel & Tourism. NEXT, choose an industry hot topic or current issue that is affecting that industry, specifically.

How much money must robinson invest at the end of each years : How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $600,000 at the end of that time?

Hypothetical study on the effects of age and time on scores : The following data are from a hypothetical study on the effects of age and time on scores on a test of reading comprehension. Compute the analysis of variance summary table.

Developing an ethical culture : Discuss how Kellogg, being ethical and socially minded go hand in hand. Explain how Kellogg benefits from being socially responsible, either financially or in some other way.

What are three recruiting strategies : What are three recruiting strategies that could be used to recruit for this job position?

The purchases budget : The company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 20%.

User Account

All Pages