Plan to deposit the funds in a mutual fund

Assignment Help Financial Management

Reference no: EM131495650

1. You are planning on traveling to Ireland 5 years from now, and you can save $3,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 4.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?

$17,776

$16,412

$18,355

$15,803

2. You plan to invest in bonds that pay 3.78%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $40,000?

3. How much would you be willing to pay for an account today that will have a value of $1,000 in 10 years under continuous compounding if the nominal rate is 5.2%?

$564.12

$523.88

$497.39

$594.52

Reference no: EM131495650

Questions Cloud

What is the value of safeco stock : Financial analysts forecast Safeco Corp.’s growth rate for the future to be 8 percent. What is the value of Safeco stock when required return is 10 percent.

What is the proportion of debt in the firm capital structure : What is the proportion of debt in the firm's capital structure?

What is the MIRR of project that maximizes shareholder value : The projects are equally risky, and their WACC is 11%. What is the MIRR of the project that maximizes shareholder value?

Calculate? investment return on the basis of dollar value : Calculate? Joe's investment return on the basis of the? US$ value of the shares.

Plan to deposit the funds in a mutual fund : You plan to deposit the funds in a mutual fund that you think will return 4.5% per year.

Current liabilities to get operating current liabilities : Which of the following would be excluded from current liabilities to get "operating current liabilities"?

Output of a financial plan : Which one of the following is not an output of a financial plan?

Mutally exclusive projects : A firm with a WACC of 10% is considering the following mutally exclusive projects:

Distinguish between unsystematic and systematic risk : Distinguish between unsystematic and systematic risk. Could be have investments that could assume a zero risk? Which investment and why?

User Account

All Pages