What is the required semi-annual payent

Assignment Help Finance Basics

Reference no: EM13269413

Suppose that you are the manager of a newly formed retirement fund. You are to set up a series of semiannual payments to accumulate a sum of $1,000,000 in 10 years. The interest rate is 6% percent annually, compounded semiannually. The first payment into the fund will be made six months from today and the last payment will be at the end of the tenth year.

a. What is the required semi-annual payent, to the nearest dollar?

b. Immediately after the 4th payment at the end of the second year, interest rates have risen to 8% annually. You can earn that rate on funds already accumulated and the 16 future payents. Interest is to be compounded semi-annually on all funds. What is the revised payment that will allow you to reach your investent goal of $1,000,000.00

Reference no: EM13269413

Questions Cloud

Write code in c to output male if gender contains upper case : Given a char variable called gender, write C++ statements to output "Male" if gender contains upper or lower case M, "Female" if it contains upper or lower case F, or "Invalid Gender" if it contains anything else. Use if / else if statements.

How do people use language to style themselves : How do people use language to style themselves - to take on a particular persona or juggle between personae in interaction with others?

What is the gauge pressure on the bottom of the tube : A test tube standing vertically in a test tube rack contains 2.2 cm of oil, What is the gauge pressure on the bottom of the tube

Sensitive information about this organization confidential : Identify a health care organization with which you are familiar, and discuss working capital management and its revenue cycle as follows (be mindful to keep sensitive information about this organization confidential):

What is the required semi-annual payent : Immediately after the 4th payment at the end of the second year, interest rates have risen to 8% annually. You can earn that rate on funds already accumulated and the 16 future payents.

Identify and discuss ethical responsibilities of advertiser : Identify and discuss the ethical responsibilities of an advertiser, including the legal and regulatory perspective. Assess what the industry has done to meet those responsibilities, giving a specific example.

What is the de broglie wavelength of this rock : You throw a 13 g rock and it leaves your hand at a speed of 17 m/s. What is the de Broglie wavelength of this rock

What is the limit on the leakage resistance for capacitor : A 100uf capacitor is initially charged to 100V. We want 90% of the initial energy to remain after 1 minuet. What is the the limit on the leakage resistance for the capacitor

Determine the most relevant items to evaluate : How would companies benefit from running sensitivity analysis? How do they determine the most relevant items to evaluate?

User Account

All Pages