Investment account for purpose of buying equipment four year

Assignment Help Financial Management

Reference no: EM131012240

One year ago, the Jenkins Family Fun Center deposited $4,000 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,800 to this account. They plan on making a final deposit of $8,000 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 7 percent rate of return?

Reference no: EM131012240

Questions Cloud

What was charge for depreciation and amortization : Pearson Brothers recently reported an EBITDA of $7.5mil and net income of $1.8million. It had $2.0 mil of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

Correspond to a wide frequency distribution : Which of the following correspond to a wide frequency distribution?

What was the purpose of the introductory ideas : Do you think the introduction to Wilkinson's profile was effective or not and why? Write down your answers in a well developed paragraph of 8-10 sentences.

What governs the capacity of the beam : Use the civil engineering method(tension concrete not used) to determine the maximum moment capacity in the beam. What fails or yields first? Do a quick "back of the envelope" calculation to estimate the shear capacity of the beam.

Investment account for purpose of buying equipment four year : One year ago, the Jenkins Family Fun Center deposited $4,000 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,800 to this account. They plan on making a final deposit of $8,000 ..

What return are shareholders expecting : A company recently paid a $1.05 dividend. The dividend is expected to grow at a 16.1 percent rate. At a current stock price of $71.75, what return are shareholders expecting?

Analyze the use of value chain analysis within the firm : Compare and contrast the use of value chain analysis in this business to others that also use it

What is the equivalent annual cost of this equipment : Bridgton Golf Academy is evaluating new golf practice equipment. The "Dimple-Max" equipment costs $101,000, has a 4 year life, and costs $9,300 per year to operate. The relevant discount rate is 14 percent. The relevant tax rate is 35 percent. All ca..

Determine the friction force which acts at a : The uninform 60-lb pole is supported by the horizontal surface at A and by the small frictionless roller at B. If the coefficients of static friction and kinetic friction for end A are 0.35 and 0.25, respectively, determine the friction force whic..

User Account

All Pages