Make the first withdrawal and last withdrawal

Assignment Help Financial Management

Reference no: EM131301946

Starting next year, you will need $10,000 annually for 4 years to complete your education, I.e one year from today you will withdrew the first $10,000. Your uncle will deposit an amount today in a bank paying 5% annual interest, which will provider you needed $10,000 every year. How large must the deposit be? How much will be I. The account immediately after you make the first withdrawal and last withdrawal ?

Reference no: EM131301946

Questions Cloud

What is the rbas target for consumer price inflation : The RBA Board considers whether to change ‘the cash rate’ on the first Tuesday of every month, except January. What is ‘the cash rate’? Who is lending to whom, and for how long? What is the RBA’s target for consumer price inflation?

Explain the importance of reports to an organization : Explain the importance of Reports to an organization. Who typically reads the reports, and what use is made of reports? Who is responsible for delivering the content of reports?

How long will it be before you have enough to buy the car : You’re trying to save to buy a new $175,000 Ferrari. You have $28,000 today that can be invested at your bank. The bank pays 3.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Total cost of a college education : Assume the total cost of a college education will be $415,000 when your child enters college in 18 years. You presently have $69,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college ed..

Make the first withdrawal and last withdrawal : Starting next year, you will need $10,000 annually for 4 years to complete your education, I.e one year from today you will withdrew the first $10,000. Your uncle will deposit an amount today in a bank paying 5% annual interest, which will provider y..

Dow jones industrial average : The DJIA (Dow Jones Industrial Average) is a price weighted index consisting of thirty bluechip company stocks. AAPL, GE, and MMM etc. are all components of the DJIA. Year to date, the DJIA has dropped by 10%. Assume that there is no change in the DJ..

Even though most corporate bonds : Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 10 years to maturity, and a coupon r..

Brokerage account at same time with same brokerage firrm : You and your friend opened a brokerage account at the same time with the same brokerage firm a year ago. At that time, each of you bought $10, 000 worth of shares of XYZ stock on margin. However, out of $10, 000 each of you needed for your initial pu..

The firm has a target debt-equity ratio : Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.83 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt−equity ratio..

User Account

All Pages