User Account

All Pages

Order to declare the initial investment wise decision

Assignment Help Financial Management
Reference no: EM131880589

An innovative investment policy that costs $10,000 now will provide $1000 per month beginning 361 months from now, for as long as you live. If you die before the initial 30-year period, you receive nothing. At an interest rate of 6% per year compounded monthly, how long (in months) after you start collecting the money would you have to live in order to declare the initial investment a wise decision?

Reference no: EM131880589

Questions Cloud

Nominal annual interest rate : Assume that she can earn a nominal annual interest rate of 4% in a deposit account that compounds interest every month in the next 30 years.
Is guyan entitled to enforce its noncompete clause : Meztista claimed that the parties had made an accord and satisfaction. What is the best argument for each party? Who should win?
Prepare the journal entry that faulkner will record : For an asset that cost $21,000 with an estimated residual value of $1,000, Prepare the journal entry that Faulkner will record in 2013 related to the change
Write a paper on it system integrity- cloud computing : Write a methodology paper on IT System Integrity - Cloud Computing. Instrumentation: Describe any instruments you anticipate using to collect data.
Order to declare the initial investment wise decision : how long (in months) after you start collecting the money would you have to live in order to declare the initial investment a wise decision?
Calculate earnings per share for the year ended : Clanton, Inc has 12,000 shares of common stock outstanding at December 31, 2012. Calculate Earnings Per Share for the year ended December 31, 2012
Discuss the concept of the term reckless : The jury found that Technician and Dr. Relief were not only negligent, but also "reckless"? How exactly do you believe that the two were "reckless"?
Write a description of business process you want to address : Write a short (1- to 2-paragraph) description of the business process you want to address in the project.
What are the key advantages to systems integration : What are the key advantages to systems integration? What are the primary hurdles faced in systems integration projects and how can they be addressed?

Reviews

Write a Review

Financial Management Questions & Answers

  Regression of the stock return

To estimate a beta for a stock, you run a regression of the stock's return on that

  What is the excess return required for this stock

estimate the following probability distribution of possible returns: What is the excess return required for this stock?

  What will be firm cost of common equity using capm approach

Using the DCF approach, what is its cost of common equity? what will be the firm's cost of common equity using the CAPM approach?

  What is the firms average accounts payable balance

Aggarwal Inc. buys on terms of 2/10, net 30, and it always pays on the 30th day. What is the firm's average accounts payable balance?

  What weight would you assign to the risk-free asset

You invest $100 in a risky asset with an expected rate of return of 15% and a standard deviation of 15% and a T-bill with a rate of return of 5% and E (U)= E(r) - 0.5Aσ2. Suppose your risk aversion factor is 5. What weight would you assign to the ris..

  Decides to perform more office work and less surgery

For a 4 person surgical group, what kind of formula may be devised to fairly and consistently measure and reward productivity? What changes may be needed if one surgeon decides to perform more office work and less surgery?

  Until this two alternative become equivalent

what should be the salvage value of the machine in alternative A, until this two alternative become equivalent.

  What settle price do you get a margin call

you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (= 0.04 x €62,500 x $1.50/€ = 4 percent of the contract value in dollars). Your maintenance margin is $2,000 (meaning that your broker leaves you alone unti..

  Find the amount of the mortgage and find the down payment

Mary is purchasing a home for 294000$. She will finance her mortgage for 15 years with 4% interest. She is paying 20% down payment of the purchase price. Mary's annual taxes are 2564$ and her annual homeowner insurance is 1778$. Find the amount of th..

  Calculating the ROE-ROA-profit margin and equity multiplier

For this assignment you will conduct a comparative DuPont analysis of two companies. Using a search engine, find one large corporation included in the S & P 500. Then, find one of its largest competitors. Go to the investor relations portion of each ..

  Leasing the equipment versus financing

What is the NPV associated with leasing the equipment versus financing it with the lease equivalent loan?

  Synthetic index constructed from the constituent stocks

Consider a price-weighted index (I) and a synthetic index constructed from the constituent stocks (S).

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd