Two investment accounts-present value

Assignment Help Financial Management

Reference no: EM131296471

You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,000 payments and has an interest rate of 6 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 6 percent, also good for 7 years.

How much money would you need to invest in B today for it to be worth as much as Investment A 7 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value $

Reference no: EM131296471

Questions Cloud

Total interest expense per year associated with bond? issue : Bond interest payments before and after taxes Charter Corp. has issued 1 comma 8461,846 debentures with a total principal value of ?$1 comma 846 comma 0001,846,000. The bonds have a coupon interest rate of 99?%. What dollar amount of interest per bon..

How consistent are attitudes-define cognitive dissonance : List some challenges and opportunities for Organizational Behavior.What are the main components of attitudes?How consistent are attitudes?Define cognitive dissonance.

What is the new expected cost : If the student expects to be college for five years instead of four. Is the decision changed? What is the new expected cost?

What types of workers would you rather manage : Describe the differences you see between the introverts and extroverts on the Myers-Briggs scale. (Remember this variable encompasses much more than just "quiet" versus "outgoing.")What traits on the Big-Five scale can you see in your observations..

Two investment accounts-present value : You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,000 payments and has an interest rate of 6 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an ..

Explain how the concept apply to your current life situation : Discuss whether you feel you were "born with" this trait or if you feel this trait developed through experiences in your environment (such as family experiences or other learning experiences). Based on your experience, explain whether personality ..

Discuss the strategy of your organization : BUS 302 - Discuss the strategy of your organization according to the specificities of your business environment!

Retirement account value : You are to make monthly deposits of $735 into a retirement account that pays an APR of 10.1 percent compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 33 years?

Human resources director at matrix : Your supervisor, Annalise, the Human Resources Director at Matrix, has reviewed your research on performance appraisal feedback and is very impressed with your work. She asks you to continue research into other potential areas that require improv..

User Account

All Pages