How much money should you place in this savings account

Assignment Help Finance Basics
Reference no: EM133223714

Question: You plan to buy the house of your dreams in 13 years. You have estimated that the price of the house will be $88,853 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 5.73 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Reference no: EM133223714

Questions Cloud

Describe channel integration strategy between omega-swatch : Identify and describe the channel integration strategy between Omega and Swatch. Justify the decision to use the chosen strategy.
Analysis of international relations he advances : International Study Space Alliens Discussion - What kind of consequences this claim has for the analysis of international relations he advances
What is poys net income : FIN 201 Brigham Young University, If the marginal tax rate is 35%, what is POY's Net Income?
Business concept-coffee shop : Industry Analysis: Research industry averages for profitability in the marketplace. Use this information to determine the validity of projections and make chang
How much money should you place in this savings account : How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?
Explain successful change management initiatives : What are the greatest contributors to successful change management initiatives? What would you say are the top five change management best practices, please ela
How much will each annual payment be : The savings account pays 6.81 percent per year, compounded annually. How much will each annual payment be?
Explain risk averse-risk neutral : Define the term 'risk' and describe how it is associated with investment. Explain how risk averse, risk neutral and risk preferred differ from one another.
How much of the downpayment you put : How much of the downpayment you put and based on the comfortable monthly payment calculate for how long you are going to pay this loan.

Reviews

Write a Review

Finance Basics Questions & Answers

  Why do we exclude interest expense and taxes from operating

Why do we exclude interest expense and taxes from operating cash flow?

  Central banks of the leading world economies

Many of the central banks of the leading world economies have for years been actively working for very low interest rates. What impact has this had on asset prices? Please explain. Use the CAPM to provide a frame of reference for your discussio..

  Types of decisions

What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project.

  Find expected divided yield on fincorp common

What it is the 1) expected total return on FinCorp's common and preferred stock. 2) expected divided yield on FinCorp's common and preferred stock. 3) expected capital gains yield on FinCorp's common and preferred stock.

  What is the price-sales ratio

Blasco Inetnational has sales of $389,700 and costs of $413,210. The company has 120,000 shares outstanding.

  Calculate the inventory turnover ratio for 2010 using lifo

Calculate the inventory turnover ratio for 2010 using the LIFO and FIFO cost-flow assumption methods. Explain why the costs assigned to inventory under LIFO at the end of 2009 and 2010 are so much less than they are underFIFO.

  What is the dividend yield

What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Describe the most effective management practices

In order to make this determination and decide how you would utilize historical and contemporary perspectives to improve weak areas.

  What is a sensitivity analysis

What is a sensitivity analysis? How would you use it in planning for future expansions? What role does this kind of analysis play in your work environment and/or your home environment?

  Accepting b but the irr is an invalid method

Project B pays you $550 today, and requires that you pay out $210 at the end of each of the next 4 years (t = 1, 2, 3, and 4).

  Foreign reserve holdings and a major currency devaluation

Recently, Mexico experienced large-scale trade deficits, depletion of foreign reserve holdings and a major currency devaluation in December 1994

  What company is your perfect company

What company is your perfect company and why? Approach this question from the measure of their "connectedness" with their customer Identify your perfe

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