Value an internship opportunity for upcoming summer

Assignment Help Financial Management

Reference no: EM131956933

Solve the following equations which involve cash flows.

a. A student is trying to value an internship opportunity for the upcoming summer. The internship will last three months and pay her $2,111.00 at the end of each month. She will also get a “signing” bonus at the beginning of the internship for $525.00. If the student can invest this money in an account that pays 5.76% APR with monthly compounding, what is the value of her account at the end of her internship?

b. A relative has promised to pay you $99.00 today, and he will pay you additional payments every year for the next five years. Each year he will add $76.00 to the previous payment. (So, the payment in year 1 will equal $175.00). You decide to save every dollar you are given and will invest the money in an account paying 5.00% annual interest. How much money will you have accumulated in five years? Keep in mind that you will have six total cash flows to invest.

Reference no: EM131956933

Questions Cloud

Analyze the major costs and major benefits of the issue : Select one (1) real-world policy issue and provide a description of the issue.? Analyze the major costs and major benefits of the issue.

What kind of authority is it and does this seem reasonable : Are there claims which are based on authority for support? What kind of authority is it?Does this seem reasonable?

Create your matching game with conflict in the center : You need to design a matching game similar to the one you created in PRO222. Create your matching game with a conflict in the center.

Explain the definition of civility and its importance : For this assignment write a five paragraph essay explaining the definition of civility and its importance in education.

Value an internship opportunity for upcoming summer : A student is trying to value an internship opportunity for the upcoming summer. what is the value of her account at the end of her internship?

What is the yield to first par call and yield to put : What is the yield to maturity? What is the yield to put? What is the yield to first par call?

Census data may overstate income inequality : American families that are carefully selected to represent the whole population. The data collected are used to measure income inequality.

Discuss effective selection process for new employees : There are many benefits of having an effective selection process for new employees. Should you only hire new employees who already have all the skills.

Perfectly competitive and rocket components : If the labor market is perfectly competitive and rocket components are Acme's only other cost, how much will Sam and Wiley be paid?

User Account

All Pages