What is amount of money you would need to deposit today

Assignment Help Financial Management

Reference no: EM131066370

How much do you have to deposit today so that beginning 11 years from now, you can withdraw $9,000 a year for the next eight years (periods 11 through 18) plus an additional amount of $18,000 in the last year (period 18)? Assume an interest rate of 8%. What is the amount of money you would need to deposit today?

Reference no: EM131066370

Questions Cloud

Expected dividend yield and expected capital gains yield : The Company expects a constant growth in earnings and dividends of 4% into the foreseeable future. It is expected that the next dividend paid to stockholders will be $1.50/share. Currently the market of investor is demanding or requiring 12% on this ..

Donna fernandes-she the leader of the pack : Donna Fernandes isn't your average MBA. Her expertise lies in the behavior of slugs-real ones, not the human kind. She also holds a Doctor of Sciences degree from Princeton, she's worked at the Franklin Park Zoo in Boston, led wildlife tours throu..

The cost of equity capital is equal to risk free rate plus : The cost of equity capital is equal to the risk free rate plus an equity risk premium. In the US, over time that equity risk premium has averaged about 8.5% so that at a 3% Treasury rate, the cost of equity has averaged about 11.5%. The equity risk p..

Affecting amazon and the industries in which it competes : What environmental forces are currently affecting Amazon.com and the industries in which it competes? Which are the threats or opportunities?

What is amount of money you would need to deposit today : How much do you have to deposit today so that beginning 11 years from now, you can withdraw $9,000 a year for the next eight years (periods 11 through 18) plus an additional amount of $18,000 in the last year (period 18)? Assume an interest rate of 8..

How population was diversified through geographical drivers : Explain how geography has contributed to the development of diversity in the context of different cultures. Provide an example of a specific population and describe how the population was diversified through geographical drivers. These can include..

Find the location and sequence of the TAS2R38 gene in humans : BIOL219 - How is the amino-acid chemistry in the protein altered by the SNP? Provide an explanation for how this change might lead to the phenotypes of tasting and non- tasting.

Undergoing some temporary financial problems : Harper Healthcare Center is undergoing some temporary financial problems. As a result, they borrow $600,000 for nine months at 7 percent interest. How much interest will Wiggins Healthcare Center pay for the loan?

Briefly discuss one major type of pure risk faced by target : Identify and briefly discuss one major type of pure risk faced by Target in this article. Remember that we discussed three type of pure risk in class.

User Account

All Pages