Required lump sum payment

Assignment Help Financial Management

Reference no: EM131051301

Starting next year, you will need $25,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $25,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $25,000 payments.

How large must the deposit be? Round your answer to the nearest cent. $ ________

How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent. $ ________

Reference no: EM131051301

Questions Cloud

Preferred stock-market and common stock : The Saunders Investment Bank has the following financing outstanding. Debt: 30,000 bonds with a coupon rate of 6 percent and a current price quote of 112; the bonds have 20 years to maturity. 200,000 zero coupon bonds with a price quote of 21 and 30 ..

Find legal cases related to hipaa violations : Perform an Internet search to find legal cases related to HIPAA violations reported in the news. Discuss what occurred and, if applicable, how the situation could have been handled differently based on your understanding from the course readings.

Conceptual takeaways from the course material : Write a 1000-1500 word (4-6 APA pages) essay that explains your 4 biggest conceptual takeaways from the course material from chapters 2-8 in the textbook that were not the focus of our Discussion Forum posts.

What are your career goals : What are the top two reasons for becoming involved in various organizations within your industry? Which industry certifications or associations mentioned in the Industry Specific Certifications video would benefit you the most, and why?

Required lump sum payment : Starting next year, you will need $25,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $25,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the need..

Second section that aligns microsoft office word documents : Divide the document into five sections. End the first section after the title "A Brief Overview of Word". Then make each document category a separate section beginning each section on a new page. Vertically align the first section (the cover page) us..

About the monthly discount rate : You need a new car and the dealer has offered you a price of $20,000, with the following payment options: (a) pay cash and receive a $2000 rebate, or (b) pay a $5000 down payment and finance the rest with a 0% APR loan over 30 months. But having just..

Prepare responsibility report for the manufacturing overhead : Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable. Provide a brief evaluation of how this information could be used to measure the manufacturing manager's performance.

Delivered later than the promised delivery time : 1) A bank's savings account statements contain 24 items of account information. Last month, 2500 bank statements were checked and 52 errors were found in the account items. What is the dpmo value?

User Account

All Pages