User Account

All Pages

How much should he deposit every month

Assignment Help Finance Basics
Reference no: EM132540378

I. Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a.

II. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years.

III. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?

Reference no: EM132540378

Questions Cloud

What were that annual average returns : For a recent 10-year period, a mutual fund company reported performance (average annual return) for two of its funds as follows:
Marketing strategy and consumer behavior : How companies can produce new and better products into the market? How and why do you think products acquire meaning to consumers?
How much can she deduct as a business expense : Karen, a self-employed individual, drove her automobile a total of 15,000 business miles in 2019. How much can she deduct as a business expense
Make the closing entry for the overapplied overhead : Closing under, Make the closing entry for the $10,000 of overapplied overhead, assuming that the balance is not considered to be material.
How much should he deposit every month : Find the present and future value of $1000 received every month end for 20 years if the interest rate is J12 = 12% p.a.
Identify major public infrastructure project : Identify a major public infrastructure project that is either underway, complete, or proposed in your region.
What predetermined overhead rate for fabrication department : If the direct method is used to allocate service department costs, the predetermined overhead rate for the Fabrication Department
How much did James spend on repairs : James replaced a broken window in the kitchen for $85 and repainted the property for $750. How much did James spend on repairs
Determining the current monthly expenses : Dorothy and Matt are ready to purchase their first home. Their current monthly income is $4900, and their current monthly expenses are $3650.

Reviews

Write a Review

Finance Basics Questions & Answers

  Disposition of assets before death

"Trust is the disposition of assets upon death of grantor while Will helps the settlor with the disposition of assets before his death.

  Sea harbor inc has a marginal tax rate of 35 percent and an

sea harbor inc. has a marginal tax rate of 35 percent and anaverage tax rate of 22 percent. if the firm earns 79500

  What are transactions costs and what are information costs

Why do savers with small amounts to invest rarely make loans directly to individuals or firms?- What are transactions costs? What are information costs?

  Recession state with probabilities

Suppose your client is risk-averse but can invest in only one of the three securities, X, Y, or Z, in an uncertain world characterized as follows.

  Major types of foreign exchange risks

What are the major types of foreign exchange risks? How are these risks hedged or mitigated? What benefits do firms gain from hedging activities?

  Which payment option would you prefer

You need a kidney replacement and thus you will be paying for it. The doctor offers you two options to pay: $40,000 in 4 years or $65,000 in 10 years. The current discount rate is 8%. Which payment option would you prefer.

  Whats the importance of international capital structure

What risks can you identify when working with cash, credit and inventory management? Provide your rationale and any supporting data.

  Check into cash business

A manager at a "Check Into Cash" business defends his business practice as simply "charging what the market will bear."

  How business cycles are normal

How business cycles are normal and how unemployment ties closely with those business cycles. Given this information you will probably experience the effects

  Suppose a stock is worth 30 today and in one period will

suppose a stock is worth 30 today and in one period will either be worth 10 more or 10 less. the risk free rate is 5.

  Concept of asset allocation

Describe the concept of asset allocation and note how it works

  How much are the interests included in the second annuity

On january the 1st of N, you borrow 200 000 euros at a 4.2% interest rate according to the straight line method over 10 years

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd