The future value of the ordinary annuity is

Assignment Help Financial Management
Reference no: EM131058519

Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R= 9,000?; 9?% interest compounded semiannually for 4 years. The future value of the ordinary annuity is?

Reference no: EM131058519

Questions Cloud

Assume that a medical device has a useful life : Assume that a medical device has a useful life of 7 years, and it loses its real value at a constant rate (i.e. 1/7 of the original value per year). At a 6% interest rate, and including depreciation in the calculation, over a 4 year period a $80,000 ..
How much can you withdraw from your retirement savings : You retire at age 60 and expect to live another 24 years. On the day you retire, you have $434,900 in your retirement savings account. You are conservative and expect to earn 4.25% on your money during your retirement. How much can you withdraw from ..
Open market operations-discount policy-reserve requirements : What changes in the organization and activities of the Federal Reserve Board would you suggest to improve its operations? Should the Fed be more or less powerful? Does having a regional bank system instead of one central bank make any difference in t..
Discuss policies on how supervisors must manage conflict : Discuss policies on how supervisors must manage conflict and confrontation between employees and between employees and supervisors
The future value of the ordinary annuity is : Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R= 9,000?; 9?% interest compounded semia..
Question on funtion of the vitellus in vertebrate eggs : What is the funtion of the vitellus in vertebrate eggs? How are these eggs classified according to the amount of vitellus wiyhin them?
Use daily compounding-find price of call option on the stock : The current stock of a stock is $20. In one year the price will be either $26 or $16, the annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year (hint: use daily compounding..
Describe to me what you learned from these empirical studies : In this section you will dive into your data and describe what you find. What does dialogue look like on the onlineforums you have selected? How is gender represented or signified in the video games you analyzed?
Example of representing beings : How are sponges characterized according to example of representing beings, basic  morphology, type of symmetry, embryonic (germ) layers an d coelom, digestive system, respiratory system, circulatory system, excretory system, nervous system and typ..

Reviews

Write a Review

Financial Management Questions & Answers

  An investment offers a total return

An investment offers a total return of 14 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7.6 percent. Required: What does Bill believe the inflation rate will be over the next year?

  Total bond value does repayment of principal represent

Barry’s Steroids Company has $1,000 par value bonds outstanding at 14 percent interest. The bonds will mature in 40 years. If the percent yield to maturity is 12 percent, what percent of the total bond value does the repayment of principal represent?

  Operating cash flow as computed using tax shield approach

Which one of the following will increase the operating cash flow as computed using the tax shield approach?

  Expected rate of return from this investment opportunity

James Fromholtz is considering whether to invest in a newly formed investment fund. The fund’s investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund’..

  What is the expected return for asset

What is the expected return for asset X if it has a beta of 1.5, the expected market return is 15 percent, and the expected risk-free rate is 5 percent?

  Discuss the stock price performance of the holding company

Discuss the stock price performance of the holding company of the bank during the past three years. Remember the holding company may have other assets than the bank. But for almost all BHCs the bank is the largest asset.

  Indifferent between accepting the project and not accepting

Your firm is contemplating the purchase of a new $620,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $68,000 at the end of that time. You will be able to reduce wo..

  An equivalent financial position

Payments of $2600, due 50 days ago, and $3100, due in 40 days, are to be replaced by $3000 today and another payment in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position, Money now earns 8.25% simp..

  What is the required return on the companys stock

Bruer, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.55 percent, what is the required return on the company’s stock?

  What is the expected annual contribution to retirement plan

ELO manufacturing is looking to hire a new plant supervisor. They have 2 qualified candidates, Charlie, 43 and Kevin, 36. Both would have a starting salary of $62,000. Each could expect a 3% cost of living raise each year.

  What is the remaining unpaid balance

Skylar Masterson borrowed $250,000 to buy her first home at an annual interest rate of 12 percent with monthly payments for 30 years. Ms. Masterson would like to pay off her loan ahead of schedule. What is the remaining unpaid balance when there are ..

  Afford to make monthly payments

You want to borrow $62,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

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