What monthly payments should be

Assignment Help Financial Accounting
Reference no: EM132953477

Problem 1: You want to have $500,000 in 10 years to pay for your dream holiday home in upstate New York. You open a savings bank account for this purpose, and you want to reach the above sum by making equal monthly deposits. You will make the first deposit today and the last one in 10 years. You are assured to earn an effective monthly rate of 1% on money deposited in your account. Your monthly payments should be (rounded to the nearest cent):

A. $2,142.80
B. $2,173.55
C. $2135.81
D. $7173.55
E. $7142.80

Reference no: EM132953477

Questions Cloud

Find what is net present value of the investment : Assume an individual makes a lump sum investment at the beginning of year one of $2,892. What is net present value of the investment under consideration
Discuss the scope of regular income tax : Question - Discuss the scope of regular income tax and its relation to the rules on final tax and capital gains tax
What is net present value of investment under consideration : The investor's discount rate, for an alternative safe investment, is 10.41 percent after tax. What is the net present value of investment under consideration.
Discuss any federal income tax ramifications : Assuming that David's basis in his S corporation stock is $270,000 on the distribution date, discuss any Federal income tax ramifications
What monthly payments should be : You are assured to earn an effective monthly rate of 1% on money deposited in your account. Your monthly payments should be
Is the call option in or out or the money : Question - A call option on Company B common stock is worth $4 with 5 months before expiration. Is the call option in or out or the money
Find the depreciation basis and annual depreciation : The sales price is $120 per unit and the variable cost is $85 per unit in first year.Compute the depreciation basis and annual depreciation of the new project.
What will happen to the market value of the company : A company is considering investing in a new piece of equipment. The price of the equipment is $20 million. What will happen to the market value of the company
Explain how systematic risks affect risk planning : Based on the information you learned this week, what approach would you take in explaining how systematic and unsystematic risks affect risk planning?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Define the meaning of significant influence according to aas

Discuss the key differences between full and partial goodwill methods. Define the meaning of significant influence according to AASB 128.

  Maturity value-number of interest periods over life of bond

Sunland Inc. has issued three types of debt on January 1, 2017, the start of the company’s fiscal year. (a) $12 million, 12-year, 13% unsecured bonds, interest payable quarterly. Prepare a schedule that identifies the following items for each bond: (..

  How much is the interest paid on the third payment

Journalize the payment made on the 4th payment period. Adan incurred a debt of P10,000 for which a note was issued. It is amortized by making equal payments

  Forecasting net income using pro forma income statementpro

forecasting net income using pro forma income statementpro forma income statement at the end of last year roberts inc.

  What is the npv of a project if the project life is estimate

Green Landscaping's cost of capital is 13.76 percent. What is the NPV of a project if initial costs are $1,835,767 and the project life is estimated as 6 years

  What are the most important elements of a service company

What are the most important elements of a service company from an analytical perspective? If you were to analyze the financial statements

  What is the banks cost of preferred stock

Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $92 per share. What is the bank's cost of preferred stock?

  Calculate the book value of the old piece of equipment

Irvin Enterprises is considering the purchase of a new piece of equipment to replace the current equipment. Calculate the book value of old piece of equipment

  How do solve the book value of the equipment at december

On June 1, 2038, J17r-Pa Company purchased land, a building, and some equipment. Calculate the book value of the equipment at December 31, 2045.

  Compute breed dollar sales that will yield projected

Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold):  Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 1..

  Periodic inventory method-what was the cost of units sold

A company had inventory of 17 units at a cost of $21 each on November 1. On November 2, they purchased 22 units at $22 each. On November 6, they purchased 18 units at $23 each. On November 8, they sold 42 units for $66 each. Using the LIFO periodic i..

  Calculate the december ending balance of retained earnings

Calculate the December 31, 2017 ending balance of retained earnings. The records of Biloxi Corp for calendar 2017 reflected the following correct pre-tax amount

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