Various school and living expenses

Assignment Help Financial Management

Reference no: EM13883232

Pete Morton is planning to go to graduate school in a program of study that will take 3 years. Pete wants to have $16600 available each year for various school and living expenses. If he earns 6 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $16600 a year for 3 years?

Reference no: EM13883232

Questions Cloud

What is the current price of kleins common stock : The last dividend paid by Klein Company was $2.00. Klein’s growth rate is expected to be a constant 4 percent for 2 years, after which dividends are expected to grow at a rate of 6 percent forever. Klein’s required rate of return on equity (ks) is 8 ..

Personal automobile policy : Raman Patel has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. Raman loses control an..

Max starts making deposits into fund continuously : Max starts making deposits into a fund continuously at a rate of (19-2t). He will be making deposits until time t=7. This fund credits a force of interest of 2.1%. Calculate the present value of this fund two ways: one method should use an Increasing..

How many months will it be before he pays off the card : Paying off credit cards Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $400. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment..

Various school and living expenses : Pete Morton is planning to go to graduate school in a program of study that will take 3 years. Pete wants to have $16600 available each year for various school and living expenses. If he earns 6 percent on his money, how much must be deposit at the s..

Standard deviation-create your optimal complete portfolio : Stock A has a standard deviation equal to 20% and an expected return of 11%. Stock B has a standard deviation equal to 25% and an expected return of 14%. The correlation coefficient of the returns on Stock A and Stock B is 50%. How much must you inve..

What is the yield to maturity on flps bond : Flp has 7% annual coupon bonds outstanding with 30 years let until maturity. The bonds have a face value of 1,000 and their current market price is 1,145.92. What is the yield to maturity on flp's bond?

Issues zero coupon bonds on the market at price : Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds?

Who has the better forecast : If you have to pay 1million pounds to UK firm in 60 days. The current spot rate is $1.8 per pound. Two people forecast the future spot rate after 60 days. Jenny forecasts that the spot rate will be $1.72 per pound after 60 days. Amy forecasts that th..

User Account

All Pages