What amount must be invested each year to accumulate

Assignment Help Financial Management
Reference no: EM13980814

A saver wants $100,000 after ten years and believes that ist is possible to earn an annual rate of 8 percent on invested funds. What amount must be invested each year to accumulate $100,000 if... a.) the payments are made at the beginning of each year or b.) if they are made at the end of each year?

Reference no: EM13980814

Questions Cloud

The source of taxable revenues make any difference : Given the following information on State A and State B: State A has no state income tax but a high state sales tax. State B has a medium state income tax and a medium state sales tax. Both States receive the same tax revenue per capita. Does one stat..
Home cleaning service two recurring transactions : Clean Sweep company offers home cleaning service two recurring transactions for the company are billing customers for services performed and paying employee salaries for example on March 15 bills totaling $6,000 were sent to customers and $2,000 was ..
Awareness about available savings and discounts : The goal of the presentation is to raise student awareness about available savings and discounts. You decide to modify the original slide show to add additional information and visual impact. You will insert and modify an image, a SmartArt graphic..
Relationship between correlation and causation : 1. Explain the relationship between correlation and causation, comparing and contrasting these two aspects of predictive behavior of systems design. Please provide at least one scenario to support your explanation
What amount must be invested each year to accumulate : A saver wants $100,000 after ten years and believes that ist is possible to earn an annual rate of 8 percent on invested funds. What amount must be invested each year to accumulate $100,000 if... a.) the payments are made at the beginning of each yea..
What is the interest rate if she borrows from her firm : Anne Morgan wants to borrow $6,000 for a period of four years. She has two choices. Her bank is offering to lend her the amount at 7.25 percent compounded annually. She can also borrow from her firm and will have to repay a total of $8,130.93 at the ..
Explain how they differ within and between categories : Explain how they differ within and between categories - synthesize a strategy as to evaluate the performance of a company using the listed ratios and a suitable horizontal and/or vertical analysis.
What is the effective annual return over the bonds life : A $1,000 face value zero coupon bond is purchased for $700 five years prior to maturity. What is the effective annual return over the bond’s life?
Reducing country risk : Reducing Country Risk. Explain some methods of reducing exposure to existing country risk, while maintaining the same amount of business within a particular country.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the average daily float

Your firm receives 10 checks per month. Of these, 6 are for $1,000 and 4 are for $500. The delay for the $1,000 checks is 5 days, and the $500 checks are delayed 8 days. Calculate the average daily float.

  Evaluating two different cookie-baking ovens

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after tax) of –$11,200 per year. The Keebler CookieMunster costs $96,000, has a 7-year life, and has an annual OCF (after..

  Cost of capital equal to the expected return on the market

cost of capital equal to the expected return on the market which is 12%. project Used books 0.85 Beta 12% expected return. if the projects are mutually exclusive, which one would be accept.

  What is minimum yield expressed as nominal annual rate

A 1,000 par value 10-year bond with coupons at 4% convertible semiannually can be called on any coupon date starting at the end of year 6. The price of this bond is 900, and the bond is redeemed at par. What is the minimum yield expressed as a nomina..

  What is the bonds current market price

BOND VALUATION Callaghan Motors' bonds have 13 years remaining to maturity. Interest is paid semi annually, they have a $1,000 par value, the coupon interest rate is 5%, and the yield to maturity is 6%. What is the bond's current market price?

  Profit potential to outstanding professional stock analyst

Which form of market efficiency would most likely offer the greatest profit potential to an outstanding professional stock analyst?

  State what effect would rising rates on corporate earnings

Given this economic background...Compose a 2-4 page report, single-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following:

  What is expected return on portfolio-invested in two assets

A stock has a beta of .7 and an expected return of 17 percent. A risk-free asset currently earns 4.8 percent. What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of 1.27, ..

  When an annuitant receives liquidation payments

When an annuitant receives liquidation payments, part of the payment is a return of principal and is thus exempt from Federal Income tax. The tax-exempt portion of the payment is calculated using the

  Find monthly savings

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $32,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second,..

  Compute the cash flow for johnson siding

Johnson Siding has a gross profit of $1,200,000 and $400,000 in depreciation expense. Selling and administrative expense is $250,000. Given that the tax rate is 40 percent, compute the cash flow for Johnson Siding

  Decreasing the interest rate

All else equal, the future value of a lump-sum amount invested today will increase if this happens Decreasing the interest rate, Decreasing the amount of the lump sum investment

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