How much will you have in the account 6 years from today

Assignment Help Finance Basics
Reference no: EM132467275

Today you opened up a local bank account. Your plan is to make five $4,000 contributions to this account. The first $4,000 contribution will occur today and then every six months you will contribute another $4,000 to the account. (So your final $4,000 contribution will be made two years from today). The bank account pays a 6% APR that is compounded monthly. After two years, you plan to leave the money in the account earning interest, but you will not make any further contributions to the account. How much will you have in the account 6 years from today?

Reference no: EM132467275

Questions Cloud

Establish the trust fund with a single investment : They will establish the trust fund with a single investment z. Find expression of z in terms of x, y, and v. (v = 1/(1+i)).
Component cost of debt for use in the wacc calculation : If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation?
Discuss the law enforcement models that have emerged : Modern-day slavery exists in the crime of human trafficking, it is described as the act of recruiting, harboring, transporting, providing, or obtaining.
Component cost of debt for use in the wacc calculation : If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation?
How much will you have in the account 6 years from today : How much will you have in the account 6 years from today?
Analyze and argue both sides of the theory selected : Take the theory that you believe would benefit your community most effectively and find four sources you can use to look at both sides of the issue.
How much will you have in the account 6 years : How much will you have in the account 6 years from today?
Determine about a existing debt service fund transactions : general journal for the City Hall Debt Service Fund and prepare journal entries for the following transactions. Control accounts are not necessary
What is the company cost of preferred stock : What is the company's cost of preferred stock for use in calculating Wacc

Reviews

Write a Review

Finance Basics Questions & Answers

  Should your company puchase the loader

The operator costs $25.00 per hour. Using 1,100 billable hours per year determine the net present value for the purchase of the loader using a MARR of 22%. Should your company purchase the loader?

  What is the present value of operating cash flow

A machine will produce 10000 units a year. The units are priced at $30 and have a variable cost of $7. There is a fixed cost of $50000 per year. the company pays no tax and has 0 tax rate. What is the present value of operating cash flow

  What is the net operating cash flow in a particular year

What is the net operating cash flow in a particular year for a proposed project with the following data?

  What is the di current total uses of liquidity

A DI has $10 million in T-bills, a $5 million line of credit to borrow in the repo market, and $5 million in excess cash reserves (above reserve requirements).

  What will the new earnings per share be

A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6, 200. Equity is worth $5,000.

  Why is the permitting stage of development often the

why is the permitting stage of development often the riskiest stage of the

  What is the average return of a portfolio composed

What is the average return of a portfolio composed of equal proportions of gold and stocks?

  What is the price of the stock today

Thirsty Cactus Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 12 percent, what is th..

  What is the company total debt

Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million.

  Current price of the bonds if the present ytm is given

The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds.

  What is the balance in the account after 3 years

What is the balance in the account after 3 years? How much of this balance corresponds to “interest on interest”?

  What should the current rate be on a 2-year and 3-year

If the liquidity premium theory is correct, what should the current rate be on a 2-year and 3-year Treasury security?

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