Thai account at the start of vacation

Assignment Help Finance Basics
Reference no: EM132579947

Biswaroop wants to take a year long vacation in Thailand. He figures he can live on 36200 bhat per month. (1 Canadian dollar = 31 Thai bhat (rougly)). He plans to withdraw that amount at the start of each month from his Thai savings account paying 2% interest compounded monthly.

a) How much money (in Thai bhat) will he need in his Thai account at the start of his vacation?

In order to save up the necessary amount of money, Biswaroop will deposit money at the end of each month for 2 years in a Canadian savings account paying 4% per year compounded monthly. His first deposit will be $P and then each subsequent deposit will increase by $P.

b) How much does he need in Canadian dollars so that when he transfers it to his Thai account he has enough bhat for the year?

c) What is the PV of an annuity due paying $1 (Canadian) per month for 12 months?

d) How big does $P have to be so that he ends up with enough Canadian dollars in his account to start his vacation?

Reference no: EM132579947

Questions Cloud

Discussing the Development of Plate Tectonics : Write 2-double-spaced page discussing the Development of Plate Tectonics and How Scientists Understand the Plate Movement on the Earth's Lithosphere
How much money you would need to save : How much money you would need to save a year to have at least $500,000 when you reach 70,
What effect would a decrease in the interest rate : What effect would a decrease in the interest rate have on the future value of a deposit and what effect would an increase in the holding period have on the futu
What is the current price of a share of kodak stock : If Kodak just paid a dividend of one dollar this year what is the current price of a share of Kodak stock based on the dividend growth model
Thai account at the start of vacation : How much money (in Thai bhat) will he need in his Thai account at the start of his vacation?
Essay on Influence of Leadership Behaviors at Workplace : Write a 1-page essay on the topic 'Influence of Leadership Behaviors at Workplace' explaining:- how a leader's behavior influences employees working environment
What is a maximum price would pay for the bond : Make semi annual interest payments at 65 if you require a 10% yield to maturity on this investment what is a maximum price you would pay for the bond
How much is sumeet annuity worth : The first payment is $2000 and the payments grow by R = 4% per year. Interest rates are r = 2% annually.
Information system infrastructure : Research at least two articles on the topic of managerial issues of a networked organization. Write a brief synthesis and summary of the two articles

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the planned dollar increase

A boutique had net sales of $760,000 for a six-month period ending July 31. Calculate turnover for the period if the monthly retail inventories were.

  Firm to sell its inventory

Al's Sport Store has sales of $2,720, costs of goods sold of $2,080, inventory of $516, and accounts receivable of $426. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

  Primary difference between bonds issued by government

Explain the primary difference between 20-year bonds issued by the U.S. government and 20-year bonds issued by IBM?

  Find the monthly data for the stock price

On the spreadsheet with this chapter you will find the following monthly data for Cisco ' s stock price and the S&P 500 index.

  What are the operating profit margins

Two firms have sales of $1.3 million each. Other financial information is as follows: What are the operating profit margins and the net profit margins

  Difference between a national bank and a state bank

What is the difference between a national bank and a state bank? Which banks have to be members of the Federal Reserve System?

  Calculate the dollar cost of the possible hedges

Calculate the dollar cost of the possible hedges and explain which hedge you would use

  Sample representative of the population with respect

Is this sample representative of the population with respect to the number of pounds lost?

  Differences between competency-based pay

What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee?

  Why is optimal employment and output

Why is optimal employment and output unlikely to occur when the average product of a monopolist is still rising

  Computing capital structures of magnetic materials

Magnetic materials is an unlevered firm. Its current beta is 1.2. The expected market rate of return is 15 % and the risk free rate is 8%.

  Return on equity with an increase in debt financing

Determine the implications of a change in the return on equity with an increase in debt financing?

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