How much money must you put in the investment account

Assignment Help Finance Basics
Reference no: EM13285083

You want $20,000 in 5 years to take your spouse on a second honeymoon. Your investment account earns 7% compounded semiannually. How much money must you put in the investment account today? (round to the nearest $1)

a. $14,178
b. $15,985
c. $13,349
d. $12,367

 

Reference no: EM13285083

Questions Cloud

Make-up a fantacy charcter that comes to earth in what way : Make-up a fantacy charcter that comes to earth in what way, your mission in life, the villains you must outwit, and your magic powers?
Which of following are examples of non-diversifiable risks : You are considering buying some stock in Continental Grain. Which of the following are examples of non-diversifiable risks?
Explain the operation of the dispenser : A water dispenser for pets has an invented plastic bottle ( the water is dyed blue for contrast).When a certain amount of water is drunk from the bowl, Explain the operation of the dispenser
State how many grams of solid precipitate will be formed : If a solution containing 43.297 g of mercury(II) acetate is allowed to react completely with a solution containing 12.026 g of sodium sulfate, how many grams of solid precipitate will be formed. How many grams of the reactant in excess will remain..
How much money must you put in the investment account : You want $20,000 in 5 years to take your spouse on a second honeymoon. Your investment account earns 7% compounded semiannually. How much money must you put in the investment account today? (round to the nearest $1)
What is the magnitude of the average velocity for this trip : A truck travels 2.75 km north and then makes a 90° left turn and drives another 4.90 km. The whole trip takes 6.00 min. What is the magnitude of the average velocity for this trip
How much higher or lower will the project roe : How much higher or lower will the project's ROE be if you select the machine that produces the higher ROE, i.e., what is ROEB - ROEA? (Hint: Since the firm uses no debt and its tax rate is zero, ROE = EBIT/Required investment.)
When using the venier calipers : When using the venier calipers, you should always measure to what level of accuracy?
Find the corresponding distance traveled by the orbiter : The 230,000 lb space-shuttle orbiter touches down at about 220 mi/hr. find the corresponding distance (in feet) traveled by the orbiter

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the call option price

Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated pound call is $1.30. Assume r = 0.045, rf = 0.06, ? = 0.15 and the option expires in 180 days. What is the call option price?

  Capital structure-fallacies and misconceptions

What type of capital structure should the firm choose and why? Please comprise capital structure fallacies and their effects on a firm's decision.

  Describe and discuss the american opportunity credit

Describe and discuss the American Opportunity Credit, OR the Hope Scholarship Credit, giving an example, OR describe and discuss 529 Plans, giving an advantage and a disadvantage.

  What cash price should duncan accept on a tv set listed

What cash price should Duncan accept on a TV set listed at $1195 if Duncan could use the cash to pay off debt now, on which it pays a 13.5% simple rate of interest ?

  Find the value of the decedents gross estate

Assume decedent dies in 2006 and has interests in the following assets: $400,000 residence owned jointly with right of survivorship with her husband;

  Administration and enforcement of erisa

How do these agencies below impact the administration and enforcement of ERISA:

  Compute the annual cash revenues

An oil corporation is drilling a series of new wells on the perimeter of a producing oil field. About 20% of new wells will be dry holes. Even if a new well strikes oil, there is still uncertainty about the amount of oil produced:

  Compound interest-future value of an annuity

An investor deposits $50,000 today in the interest bearing account. How much would the investor accumulate by the end of five years if interest is compounded monthly?

  What will your monthly payments be

You want to buy a new sports coupe for $76,500, and the finance office at the dealership has quoted you a 5.8 percent APR loan for 72 months to buy the car. What will your monthly payments be?

  What is the value of a put option written on the stock

What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Round your answer to the nearest cent.

  What is the required return on starbucks debt

Also assume that CAPM holds and that the risk-free rate is 4% and the market risk premium is 8%. Suppose Starbucks' weighted average cost of capital is 10.6%. What is the required return on Starbucks' debt?

  Describe and discuss the concept of ethics

Describe and discuss the concept of ethics, please give an example.

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