Invest now in order to have same amount of money

Assignment Help Financial Management

Reference no: EM131338175

Ten years ago, Hailey invested $2,900 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate.

How much money should he invest now in order to have the same amount of money in 20 years as Hailey?

Reference no: EM131338175

Questions Cloud

Time value of money calculations use compound interest : If we grow $100 over a period of time, TVM calculations will show the future amount with compound interest, which is not the same as simple interest. Time value of money calculations use compound interest. What is the difference between compound inte..

What tax issues should jennelle and paula consider : Both shareholders use the calendar year as their tax year and desire that the corporation make an S election. What tax issues should Jennelle and Paula consider with respect to the incorporation?

If the firms wacc is 9 percent what is the projects npv : A project has annual cash flows of $7,500 for the next 10 years and then $10,000 each year for the following 10 years.- If the firm's WACC is 9 percent, what is the project's NPV?

What is a compiler and a source program : What is a compiler? What is a source program? What do you call a program that translates Java bytecode into machine language instructions?

Invest now in order to have same amount of money : Ten years ago, Hailey invested $2,900 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order ..

Estimate the current cost of capital for petsmart : Estimate the current cost of capital for PetSmart.- Assuming that all of the existing debt gets refinanced at this new rate, estimate the value per share after this transaction.

What would be third year future value : A deposit of $330 earns the following interest rates: a. 8 percent in the first year. b. 6 percent in the second year. c. 5 percent in the third year. What would be the third year future value?

Calculate the correlation coefficient : Compute the correlation coefficient. A scatter diagram is provided below. Based on it, does there appear to be any relationship between the number of assemblers and production?

Estimate the current cost of capital for petsmart : Assuming that all of the existing debt gets refinanced at this new rate, estimate the value per share after this transaction.

User Account

All Pages