Started making annual deposits

Assignment Help Financial Management
Reference no: EM131487498

Six years ago you started making annual deposits of $420 into an account paying 8% annual return. You continue to make these deposits every year without fail. If you keep doing this every year for the next 5 years, how much money will you have in 5 years?

Reference no: EM131487498

Questions Cloud

How much will you pay for the company stock today : how much will you pay for the company’s stock today?
What is the sustainable rate of growth : What is the sustainable rate of growth (under constant debt/equity)?
How much should you be willing to pay for bond today : Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. How much should you be willing to pay for Bond X today?
Required rate of return-how much is all this worth today : How much is all this worth today, if the required rate of return is 6%?
Started making annual deposits : Six years ago you started making annual deposits of $420 into an account paying 8% annual return.
What is larrys accounts receivable turnover : What is the relationship between the terms that Larry is giving and his average daily collection? what is Larry's accounts receivable turnover?
Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.61 million.
Benefit from diversification effect you are also considering : However, to benefit from diversification effect you are also considering investing another $2000 in either Stock B.
What is the fair value of these cash flows : What is the fair value of these cash flows today, if the going rate is 9 percent per year?

Reviews

Write a Review

Financial Management Questions & Answers

  Weighted average of that implied by outstanding debt issues

Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $80, and the book value per share is $7. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $75 million, ..

  What is the balance in account

Lee Holmes deposited $15,900 in a new savings account at 6% interest compounded semi annually. At the beginning of year 4, Lee deposits an additional $40,900 at 6% interest compounded semi annually. At the end of 6 years, what is the balance in Lee’s..

  What is the expected capital gains yield and dividend yield

Stock Values The next dividend payment by ZYX, Inc., will be $2.85 per share, The dividends are anticipated to maintain a 4.5 percent growth rate, forever. If ZYX stock currently sells for S84 per share, what is the required return? Stock Values For ..

  How does it auditing differ from financial auditing

Reflect on the skills you have gained from this course and how the skills may prepare you for an information technology auditing career. How does IT auditing differ from financial auditing? Make a list of the skills you think are important for financ..

  What is stock price today-required rate of return on stock

John is evaluating a stock that he believes will pay a dividend equal to $2.45 in exactly one year from today. Further, John expects that in addition to the dividend he will be able to sell the stock for the amount $48 per share also one year from to..

  Analyzing a projects incremental cash flows

According to the _________, analyzing a project's incremental cash flows allows the project to be evaluated independently from the firm and judged on its own merits.

  Considering new three-year expansion project

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.61 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,050,000 in ..

  What is your portfolio reward to risk ratio

A risky asset has an expected return of 12% and standard deviation of 18%. The risk-free rate is 6%. If you invest 40% of your funds in the risk-free asset and 60% of your funds in the risky asset, (A) what is your portfolio’s expected return, (B) wh..

  Find the future value and present value

Find the future value of today's $500 in 5 years under each of the following conditions. Find the present value of today's $10,000 in 5 years under each of the following conditions.

  Cost of borrowing the maximum amount of credit available

MDM Inc. is considering factoring its receivable. The firm has credit sales of $600,000 per month and an average receivable balance of $600,000 with net 90 credit terms. What is the cost of borrowing the maximum amount of credit available to MDM Inc...

  What is the dollar value of ending inventory

Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to manufacture, what is the dollar value of ending inventory in January if beginning inventory is 10,000 units and January sales are 15,000?. Select one: a..

  What must the coupon rate be on the bonds

Essary Enterprises has bonds on the market making annual payments, with twelve years to maturity, a par value of $1,000, and selling for $984. At this price, the bonds yield 7.7 percent. What must the coupon rate be on the bonds?

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!

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