How much will be in your account after three years

Assignment Help Financial Management
Reference no: EM131985315

a. You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 6% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent.

b. One year from today you must make a payment of $7,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 6% nominal interest compounded quarterly. How large must each of the two payments be? Round your answer to the nearest cent.

Reference no: EM131985315

Questions Cloud

Distinguish among the three levels of market efficiency : Explain the Efficient Markets Hypothesis (EMH). Distinguish among the three levels of market efficiency.
Present value of annuity-discount rate increases : Present Value of an Annuity of $100 received each year at 3% for 5 years. As the discount rate increases, the PVA _________________.
What is the fair present value of the stock : If the required rate of return on the preferred stock is 6 percent, what is the fair present value of the stock?
What is the percentage change in the price of Bond Dave : If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave?
How much will be in your account after three years : If the bank pays 6% nominal interest, compounded semiannually, how much will be in your account after 3 years?
Take for her to completely pay off the stereo system : Approximately how many months will it take for her to completely pay off the stereo system?
About what is the principal balance on the loan : After 12 years, Bill wants to pay off his house; about what is the principal balance on the loan?
What is the present value of winnings : If the appropriate interest rate is 6.3 percent, what is the present value of your winnings?
What is the maximum amount your scholarship : What is the maximum amount your scholarship will be able to pay out each year?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate value of the firm and the firm equity

Use the free cash flow approach to calculate the value of the firm and the firm's equity.

  What is maximum amount firm should pay for project

What is the maximum amount a firm should pay for a project that will return $16,000 annually for 5 years if the opportunity cost is 10%?

  Nonannual compounding using calculator

How large will his down payment be 4 years from today? Nonannual compounding using calculator

  Explain what is the firm''s income tax liability

Dividends received of $44,209, dividends paid of $10,000, and income taxes. What is the firm's income tax liability?

  Average amount of debt for industry at cost of debt

Suppose the Washington Post Company WPO has no debt and any equity cost of capital of 9.2%. The average debt-to-value ratio for the publishing industry is 13%. What would it cost of equity be if it took on the average amount of debt for its industry ..

  Portfolio analysis-calculate standard deviation of returns

You have been given the expected return data shown in the first table on three assets -F, G, and H- over the period 2016-2019. Expected return. Calculate the expected return over the 4-year period for each of the three alternatives. Calculate the sta..

  What are the after tax present worth

A company borrows $200,000 at 12% compounded annually to buy new equipment for its warehouse. What are the after tax present worth?

  The three-month libor rate two months

The three-month LIBOR rate two months ago was 9.8% per annum (compounded quarterly). What is the value of the swap?

  What is the stock price after the stock dividend

Bill currently owns 100 shares of Taliant Inc. valued at $10 each and Taliant has just declared a 10% stock dividend. Prior to the stock dividend there were 2,000 shares outstanding. How has the value of Bill’s investment changed and what is the stoc..

  The coupon payments are made quarterly

Fabulous Farah’s Fancy Footwear (4F) has $1,000 face value bonds outstanding with a 10% coupon rate; the coupon payments are made quarterly.

  What is stock price per share immediately after repurchase

How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?

  Should ofs use the multi-dimensional ranking system

Should OFS use the multi-dimensional ranking system described in Exhibit 5, or should it just emphasize strategic fit with the Balanced Scorecard.

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