How much would she need to deposit today

Assignment Help Financial Management

Reference no: EM131996370

Complete the attached worksheet. Please show all work

1. If Jim deposits $2000 in a money market account and it earns 3% (compounded annually) per year,

How much will he have in 8 years?

How much will he have if he earns 4% for 8 years?

How long will it take his money to double if he earns 4%? 6%?

How long would he have to leave it in the account (at 3%) in order to accumulate $10,000?

2. Vanessa wants to accumulate $18000 in her savings to return to graduate school in 6 years. Assuming she can earn 4.5% interest (compounded annually),

How much would she need to deposit today to reach her goal (one-time deposit)?

How much would she need to deposit each year (at the beginning of the year, aka "ordinary annuity") to reach her goal?

If she found a way to earn 6%, how much would her annual deposit need to be?

Reference no: EM131996370

Questions Cloud

What is the firms earnings growth rate : They also stated the firm's return on equity is 12% percent. AF retains 60% percent of their earnings. What is the firms earnings growth rate

State the appropriate null and alternative hypotheses : a. State the appropriate null and alternative hypotheses.

What is the current price : The dividends are expected to grow at a constant rate of 7% percent per year, indefinitely. If investors require a return of 15% percent, what is current price

Interpret the meaning of the? p-value in problem : If you test the null hypothesis at the 0.10 level of? significance, is there evidence that the mean? one-time gift donation is greater than ?$75?

How much would she need to deposit today : How much would she need to deposit today to reach her goal (one-time deposit)? If she found a way to earn 6%, how much would her annual deposit need to be?

What is the percentage change in the price of the bonds : What is the percentage change in the price of the bonds if interest rates suddenly rise by 5%

Two different investment alternatives : Evan is examining two different investment alternatives:

Evidence to support the claim of the aaup : If 150 out of a sample of 750 AAUP members own Roth IRAs, is this sufficient evidence to support the claim of the AAUP?

Compute berclair basic and diluted earnings per share : Four million treasury shares were sold on October 1. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018

User Account

All Pages