How much money will she have to invest on january one

Assignment Help Operation Management

Reference no: EM131926262

Problem

A woman inherited $356,000. As she had no immediate need for the money at the time she inherited, she decided to invest some or all of it on January 1, 201 n , with a goal of making the money grow to $500,000 by December 31, 201n + 5. She is considering the investments in the following table.

She wants to set up her investment strategy at the start of year 1. If she does not need to invest all of the inheritance to have $500,000 at the end of year 6, she will find another purpose for the remainder. She may choose to place a sum of money in any or all of the investments available at the start of year 1. From that point, however, all subsequent investments should come from the matured investments of previous years. To ensure that funds are spread over different investment choices, she does not want any single new investment in any year to be over $120,000. (Note that prior investments in a fund do not count toward this limit.) How much money will she have to invest on January 1, 201 n, to meet her goal of $500,000 at the end of the sixth year?

Reference no: EM131926262

Questions Cloud

What is the free cash flow for year zero : What is the after-tax cash flow from the sale of the machine at the end of the third year? What is the Free Cash Flow for year 0?

What is the estimated amount of dollars you will receive : What is the estimated amount of dollars you will receive when converting the francs to U.S. dollars in one year at the spot rate at that time?

Determine the quantity of pure : Determine the quantity (g) of pure CaCl2 in 7.5 g of CaCl2•9H2O.

What is the risk-free rate of return : Assuming no arbitrage opportunities, what are the values of the unit claims, at time 0? What is the risk-free rate of return that must exist in this market?

How much money will she have to invest on january one : How much money will she have to invest on January 1, 201 n, to meet her goal of $500,000 at the end of the sixth year?

State briefly the reasons for your investment strategy : State briefly the reasons for your investment strategy. State a source from which you would get information on which to base your investment strategy.

What will be its cost of equity and What will be its WACC : Suppose Max's debt-equity ratio increases to 1.0. What will be its cost of equity? What will be its WACC?

What is the critical price for a margin call : You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent.

How much will the mass of the solid decrease : If the molar mass of the solid in the cell is 300 g mol-1 and its vapour pressure is 0.224 Pa at 450 K, by how much will the mass of the solid decrease.

User Account

All Pages