Time value of money, You are graduating in two years and

Time value of money

Assignment Help English

Reference no: EM13861158

Time Value Of Money

You are graduating in two years and you start thinking about your future. You know that you will want to buy a house five years after you graduate and that you will want to put down $60,000. As of right now, you have $8,000 in your savings account. You are also fairly certain that once you graduate, you can go work in the family business and earn $32,000 a year, with a 5 percent raise every year. You plan to live with your parents for the first two years after graduation, which will enable you to minimize your expenses and put away $10,000 each year. The next three years, you will have to live out on your own, as your younger sister will be graduating from college and has already announced her plan to move back in the family house. Thus, you will only be able to save 13 percent of your annual salary. Assume that you will be able to invest savings from your salary at 7.2 percent.

What is the 'interest rate' you need to invest the current savings account balance at in order to achieve your goal?

Reference no: EM13861158

Questions Cloud

Identify two laws that typically apply to mncs : Identify two laws that typically apply to MNCs within their home country

Compare the concepts of equality and social equity : In this Discussion, you will compare the concepts of equality and social equity, and the role of public administrators in promoting social equity

Oil filters are consumed by a garage at fairly steady rate : Oil filters are consumed by a garage at fairly steady rate of 100 per week. The filters cost the garage $15 per unit and it cost the garage $50 per order. Holding cost is 25% of the unit cost. Please determine the following:Determine the optimal numb..

What type of structure will be best suited to amultinational : What type of structure will be best suited to a multinational Internet retailer?

Time value of money : You are graduating in two years and you start thinking about your future. You know that you will want to buy a house five years after you graduate and that you will want to put down $60,000. As of right now, you have $8,000 in your savings account...

Could we continue punishing people who do bad things : Consider the way you last responded to someone who wronged you and determine how you would have reacted differently if you knew that person had no free will.

Identifies role of various members of the health care team : Implements patient health assessment relevant to the case history - Identifies anti-emetic medication prescribed during management of nausea and vomiting - Identifies the role of various members of the health care team.

What philosophy is the court apply : When a Juvenile Court is looking out of the best interests of the child, "What philosophy is the court apply

Central meaning and please state it at the end of the poem : Write a poem that uses at least THREE of the following words: box, grotesque, star, teacher, obsession, parachute, exceptional, lilac, diamond, whistle, midnight, mist, miracle. Then illustrate your poem. There has to ..

User Account

All Pages