How much should you save in each of the ten years

Assignment Help Financial Management

Reference no: EM131021926

You want to have $126,027 in an account in 10 years for a planned expenditure. You propose to have this money available by saving equal amounts at the beginning of each year over the next ten years in an account earning 4% interest. How much should you save in each of the ten years? Please show all your formulas and calculations.

Reference no: EM131021926

Questions Cloud

Which time comparable companies are forecasted to be valued : John Smith, ceo of ReaseachNews inc., wants to raise $10M in Series A preferred stock from Greylock partners. Greylock partners projects that ResearchNews will reach an EBITDA of $100M in 10 years, at which time comparable companies are forecasted to..

Report for management analyzing return on the investment : Dirt Bikes’s management would like to analyze the return on its investment in its employee training and skills tracking system described in Chapter 13. Prepare a report for management analyzing the return on the investment for this system over a five..

How much should you save in each of the ten years : You want to have $126,027 in an account in 10 years for a planned expenditure. You propose to have this money available by saving equal amounts at the beginning of each year over the next ten years in an account earning 4% interest. How much should y..

What were flotation costs as a fraction of funds raised : Moonscape has just completed an initial public offering. The firm sold 6 million shares at an offer price of $12 per share. The underwriting spread was $.30 a share. The price of the stock closed at $18 per share at the end of the first day of tradin..

Prepare journal entries to record the machines : Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.

Which asset should he leave to which beneficiary : Johnson wants to leave some of his assets to charity, some to his wife, and some to his children. He has some assets in a traditional retirement plan, some in a Roth plan, and some in “outside” (nonretirement) investments. Which asset should he leave..

Manufactures no-inhale cigarettes : Boomer Products, Inc. manufactures “no-inhale” cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 5% (-5%) annually for..

User Account

All Pages