Plan for make deposits, You need to accumulate $10,000. To

Plan for make deposits

Assignment Help Financial Management

Reference no: EM131068871

You need to accumulate $10,000. To do so, you plan to make deposits of $1,750 per year, with the first payment being made a year from today, in a bank account which pays 6 percent annual interest. Your last deposit will be less than $1,750 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be?

Reference no: EM131068871

Questions Cloud

What is the percentage price change of bonds : Bond J is a 7 percent coupon bond. Bond K is a 11 percent coupon bond. Both bonds have 12 years to maturity and have a YTM of 8 percent. a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds?

Calculate the estimated value of share : Based on analysis of the company and expected industry and economic conditions, China imports is expected to earn 4.60 per share of common stock next year. The average price/earnings ratio for firms in the same industry is 8. Calculate the estimated ..

What is the coupon payment : Acme Corporation has a bond issue on the market that matures in 20 years, each bond has a $1,000.00 par value and pays an annual coupon. The bonds currently sell for a price of $1,119 each. If the market rate (yield to maturity) on this issue is 10% ..

What is expected return on an equally weighted portfolio : Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .55 .15 .22 .42 Bust .45 .14 .04 −.05 a. What is the expected return on an equally weighted portfolio of ..

Plan for make deposits : You need to accumulate $10,000. To do so, you plan to make deposits of $1,750 per year, with the first payment being made a year from today, in a bank account which pays 6 percent annual interest. How many years will it take you to reach your $10,000..

Market capitalization rate : Dolphin Killers Brand Tuna has a market capitalization rate of 10% and plans to make annual dividend payments for the next three years of $1.50, $1.60, and $1.70, with the first dividend to be paid one year from today. After that, the dividends shoul..

Market value added and economic value added : Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic Value Added (EVA). Discuss and explain both. Which is a better representative of the firm’s performance, and why?

The coefficient variation of the return : Champion Breweries must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firms analysis. For Each asset computer: a) Expected rate of return? b) The standard deviation of the expected r..

Create portfolio with an expected return : You have $299 thousand to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.81 percent, and Stock L, with an expected return of 10.01 percent. If your goal is to create a portfolio with an expected return of 12.91 p..

User Account

All Pages