The interest rate earned on the account

Assignment Help Financial Management
Reference no: EM13811303

Your wealthy uncle established a $1,000 bank account for you when you were born. For the first 8 years of your life, the interest rate earned on the account was 6.7%. Since then, rates have been only 4.7%. Now you are 22 years old and ready to cash in. How much is in your account?

Reference no: EM13811303

Questions Cloud

How well team is progressing in terms of schedule and cost : Analyze the financial problem faced by this project. You are given the following information at the end of year 1 of the 3-year project.  Describe how well the team is progressing in terms of schedule and cost? What do you expect the EAC to be depend..
Exclusive of the title and reference pages : Write a paper in MS-Word or an MS-Word compatible format of a minimum of ten pages in length exclusive of the title and reference pages. The paper must be written in APA style format using the guidance in the applicable appendices located in your ..
What is the value of the quick ratio : Jessica's Boutique has cash of $50, accounts receivable of $60, accounts payable of $400, and inventory of $100. What is the value of the quick ratio? A firm has net working capital of $600, net fixed assets of $2,400, sales of $8,000, and current li..
Management tools for microsoft windows server : Based on the Kercher (2009) article, how can management tools for Microsoft Windows Server 2008 automate user account administration
The interest rate earned on the account : Your wealthy uncle established a $1,000 bank account for you when you were born. For the first 8 years of your life, the interest rate earned on the account was 6.7%. Since then, rates have been only 4.7%. Now you are 22 years old and ready to cash i..
Interest on retirement savings : A couple will retire in 50 years; they plan to spend about $40,000 a year in retirement, which should last about 25 years. They believe that they can earn 7% interest on retirement savings.
Respect to these interest and dividend payments : USAco derives over 90 percent of its gross income from its business operations in Canada. Are there any U.S. withholding requirements with respect to these interest and dividend payments? A citizen and resident of Country X hold a certificate of depo..
What is the role or place of structured methodologies, : What is the role or place of structured methodologies, data, and algorithms? What differs between object-oriented and object-based languages
What is the effective annual rate on loan with interest rate : In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $24,000 and the interest rate is 21.75%, the borrower "pays" 0.2175 × $24,000 = $5,220 immediately, thereby receiving net funds of $18,780 ..

Reviews

Write a Review

Financial Management Questions & Answers

  Equity beta and market value of equity

XYZ Corp. has equity beta 1.8 and market value of equity $230 million. The required return on XYZ’s debt is 7.8%. The market value of that debt is $250 million and the book value is $240 million. The risk-free rate is 6% and the expected return on th..

  Semi annually to cover estimated trade-in difference

Antonio plans to buy a new car three years from now. Rather than borrow at that time, he plans to invest part of a small inheritance at 7.5% compounded semi annually to cover the estimated $6000 trade-in difference. How much does he need to invest if..

  Importance of decision making as a management activity

Has what you have learned in this subject created an increased awareness of the importance of decision making as a management activity? Why or why not?

  The financial planning process

The financial planning process

  How much will you pay for the stock

The Sleeping Flower Co. has earnings of $1.75 per share. If the benchmark PE for the company is 18, how much will you pay for the stock? and If the benchmark PE for the company is 21, how much will you pay for the stock?

  Calculate the price with the constant dividend growth model.

Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. Calculate the price with the constant dividend growth model.

  How do you determine if the company has too much liquidity

Defines how solvency and liquidity differ and provides an example of two companies. As a financial manager, what can you do to make sure your company stays solvent and is not too liquid?

  Using the indirect method in operating activities section

Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section. Prepare another statement of cash flows for 2014 using the indirect method in the Operating Activities section.

  In response to the financial crisis

In response to the financial crisis of 2007, the Federal Reserve has maintained near-zero interest rates for the past several years. The Fed has kept rates low due to slow economic and employment growth during the past few years. Suppose the Fed rais..

  Suppose a zero growth stock is expected to pay

Suppose a zero growth stock is expected to pay a $0.5 dividend every quarter and the required return is 5% with quarterly compounding. What is the price?

  Capital market instruments include

Capital market instruments include:

  Tax environment affect the various types of organizations

How does the tax environment affect the various types of organizations? (Corporation, partnership, LLC, Sole proprietorship). Explain

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