How much would have to deposit today in an account

Assignment Help Financial Accounting
Reference no: EM132873159

Question 1: Suppose you want to have $150,000 in five years. How much would you have to deposit today in an account that pays 7% interest compounded annually? How much would you have to deposit if the interest is compounded monthly? As an investor would you prefer the annual or monthly compounding? Explain why.

Reference no: EM132873159

Questions Cloud

What are the disadvantages to being public : What are the benefits accruing to a company that is traded in the public securities markets. What are the disadvantages to being public?
Discuss jerry behavior with respect to each of four terms : Discuss Jerry's behavior with respect to each of the four terms above. What are the ethical issues in the case? What factors contributed to the ethical problems
What would be the one year holding period return : If you owned 1000 shares of ALD what would have been your capital gain/loss? What would be the 1 Year Holding Period Return?
Components of a compensation management system : Define and explain fully, the concept of "Compensation," indicate what the components of a compensation management system are, and critically suggest what effec
How much would have to deposit today in an account : Suppose you want to have $150,000 in five years. How much would you have to deposit today in an account that pays 7% interest compounded annually?
What is the equilibrium expected growth rate : What is the equilibrium expected growth rate? Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25).
Explain the term price control as used in economy : 1. State three reasons why the demand curve slopes downwards
Application of monetary tools in the economy : 1. Explain the factors that limit the application of monetary tools in the economy of developingcountries
Calculate the QPIP premium to be paid by Sara Foster : Sara Foster is working in Quebec. Her weekly insurable earning is $750.00. Calculate the QPIP premium to be paid by Sara Foster

Reviews

Write a Review

Financial Accounting Questions & Answers

  What total amount should be credited to additional paid-in

What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?

  Prepare journal entries for lamar related to the bonds

Lamar Corporation owns 60 percent of Humbolt Corporation’s voting shares. On January 1, 20X2, Lamar Corporation sold $185,000 par value, 8 percent first mortgage bonds to Humbolt for $191,000. The bonds mature in 10 years and pay interest semiannuall..

  How much depreciation expense should the redbirds take

The Rhode Island Redbirds organization, How much depreciation expense should the Redbirds take in the first year, if straight-line is being used?

  Provide the journal entry for december

Prepare a bond amortization table assuming straight-line amortization. Provide the journal entry for December 31, 2010.

  Why should goodwill be accounted for

Why should goodwill be accounted for, one way, for publicly-listed firms, and other ways for private companies? Explain with an example.

  Which describes current practice in accounting for leases

Simultaneously leased back the building. The lease was reported as a capital lease. At the time of the sale, the gain should be reported as

  Analyse the conditions for using accounting based earnings

Directors would like to change to measure that item based on the fair value of $70,000. Make a critical analysis between fair value

  Carmen corporation acquired

Carmen Corporation acquired a 30 percent interest in Rudy, Inc for $336,000. On that date, Rudy's balance sheet disclosed net assets of $576,000.

  In a pro forma income statement

In a pro forma income statement, why would a finance manager make changes in the prior year’s percentages for different line items? Give an example of a line item that you would expect to vary in percentage every year as sales forecasts grow.

  Has been any goodwill on the acquisition

Has there been any goodwill on the acquisition? Or any gain on bargain purchase? Where would you find it in the financial statements

  Find what is the contract price

What is the percentage of completion during the year 2015? What is the contract price in 2016? What is the realized gross profit in 2015?

  What is Conglomco required return

Conglomco has a beta of 0.32. If the market return is expected to be 12 percent and the risk-free rate is 5 percent, what is Conglomco's required return

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