User Account

All Pages

What is the pv of all the money

Assignment Help Finance Basics
Reference no: EM133076480

You have just started your undergraduate study and expect to graduate in four years. You are planning to take a part-time job that will generate $1800 per month in the coming 4 years (end of month payments). In addition, your parents will give you $1700 at the beginning of each month till your graduation (beginning of month payments). The school tuition fees are covered by your parents (you don't need to worry about the school fees). You expect that you need to spend $2,200 per month while studying (at the end of every month). After graduation, you plan to open your own business. Assume a 6% discount rate compounded semi-annually.

  1. What is the PV of all the money you expect to receive in the coming 4 years?
  2. What is the PV of your expenses during these four years?
  3. How much money you will have saved by the end of year four (needed to start your business)?

Reference no: EM133076480

Questions Cloud

Calculate the firm peg ratio : ABC Corporation has a P/E ratio of 5.00 and an expected growth rate in earnings for the next year of 9.5%. Assuming an investor's required rate of return is 12%
Withdrawal amount during retirement period : (B) Formulate three (3) strategies you can adopt to increase the monthly withdrawal amount during retirement period.
Digital forensics methodologies : Using a digital forensics methodology, create a visual workflow diagram that shows what steps you would take in this investigation.
What is the average response time for questions : What is the average response time for questions on a school you have not previously reported on?
What is the pv of all the money : You have just started your undergraduate study and expect to graduate in four years. You are planning to take a part-time job that will generate $1800 per month
What amount was owed on the loan after three years : Payments of $1800 and $2400 were made on a $10,000 variable-rate loan 18 and 30 months after the date of the loan. The interest rate was 11.5% compounded semian
Investment in the canadian dividend fund : For the five-year period ended October 31, 2019, a Canadian Equity Income Fund had compound annual returns of 14.40% while a Canadian Dividend fund had returns
How it impacts Information Security : The tableKey U.S. Laws of Interest to Information Security Professionals, describe one of the Acts and how it impacts Information Security.
Callable corporate bond yield : What is the 3 components which form a callable corporate bond's yield spread over a risk-free rate of return?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is capitals after-tax wacc

If the returns required by investors are 9 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

  What is the total beta of tesla

The market beta of Tesla Co. is 0.82 and the average R squared of a comparable firm is 16%, what is the total beta of Tesla?

  What factors caused the global financial crisis

FIN2000 Financial Institutions and Markets What factors caused the Global Financial Crisis? Describe three factors in detail. (You need to reference at least 2 sources in your discussion)

  Under what conditions would you use a t-test as opposed to

1.under what conditions would you use a t-test as opposed to a z-test? can you use the t-table to determine the

  What is the cost of debt louie should use

Louie the Lumberjack has taken over as manager of the NAU Bookstore. He wants to make the bookstore more profitable by investing in new projects that help.

  What is the future value of this cash flow stream

Does the office renovation and subsequent lease agreement appear to be a good investment investment for the company? (Hint: Compare the cost of renovation with the present value of the lease payments. Use a 10 percent discount rate for the analysi..

  Calculate the npv and decide if the system

A new computer system will require an initial outlay of $23,500, but it will increase the firm's cash flows by $5,000 a year for each of the next 7 years.

  A producer of powdered hot chocolate

Chococo Inc., a producer of powdered hot chocolate, has just received a large order that will require the purchase of 750 metric tons of cocoa in 3 months.  The current spot price of cocoa is $2,645 per metric ton. The standard deviation of ..

  Determine the market price of company common shares

White Owl Inc. just paid a dividend of $3/ share. An investor estimates that dividends will grow at 7% per year for the next two years and then grow at an annua

  Describe the investment managers

Briefly explain why you think each of the following statements is true or false.

  What is the bond yield to maturity

Each bond carries a 6.81% coupon, payable semi-annually, and currently sells for $465.42. What is the bond's Yield to Maturity, in APR format?

  What is the implicit cost of the trade credit

Kearns, Inc., sells its goods with terms of 3/15 EOM, net 60. What is the implicit cost of the trade credit?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd