How much money will need to deposit into the account? today

Assignment Help Financial Accounting
Reference no: EM132904553

Your brother has offered to give you $160?, starting next? year, and after that growing at 2.6% per year for the next 20 years. You would like to calculate the value of this offer by calculating how much money you would need to deposit in a local bank so that the amount will generate the same cash flows as he is offering you. Your local bank will guarantee a 6.5% annual interest rate so long as you have money in the account.

Problem a. How much money will you need to deposit into the account? today?

Problem b. Assuming you deposited the amount of money in part ?(a?), and then withdrew the required payments each? year, calculate the remaining balance at the end of years? 1, 2, 10 and 19.? (Hint: To solve this problem it is best to use an excel? spreadsheet.)  

Reference no: EM132904553

Questions Cloud

How much will have to save each month in years : If he can earn a 10 percent EAR before he retires and a 9 percent EAR after he retires, how much will he have to save each month in years 16 through 30?
Which companies-company supplies products : Which companies/company supplies products and services to BMobile to operate?
How many shares have been issued : The balance sheet for Ronlad Corporation reported 185,000 shares outstanding, 283,000 shares authorized, How many shares have been issued
Feasibility study and cost-benefit analysis : Distinguish between a feasibility study and a cost-benefit analysis. Summarize the cost-benefit analysis for your hypothetical e-commerce company.
How much money will need to deposit into the account? today : Your brother has offered to give you $160?, starting next? year, How much money will you need to deposit into the account? today?
What amount is the total income to be recognized : Shelley Corporation acquired $6,000,000 of Zogie Inc.'s 12% bonds on May. What amount is the total income to be recognized in the Income Statement for 2021
Calculate the cost of each capital component : Calculate the cost of each capital component-in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs)
Difference between power-authority and leadership : Describe the difference between power, authority, and leadership. Do you know who the power structure is in your organization?
What are issues of standardization and localization : What are the issues of standardization and localization in general for MNEs and how do they particularly manifest themselves in IHRM activities?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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