What quarterly contribution will the company

Assignment Help Financial Management
Reference no: EM131814654

A business is required to payout $20,000 per month for 10 years beginning in 20 years to pensioners. What quarterly contribution will the company need to make for the next 20 years to meet its obligation? Assume money always earns 4% annually.

(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Quarterly payments $

Reference no: EM131814654

Questions Cloud

Estimate the value of the call option to be as of date : What would you estimate the value of the call option to be as of date 0?
How many years would it take you to double your money : How many years would it take you to double your money, if you could invest it and earn 8% per year?
How much principal and interest will be paid : You have just taken out a $180,000, 30- year mortgage on a home. How much principal and interest will be paid in the 12th payment?
Provides aid to costa rica in response to a flood : The United States provides aid to Costa Rica in response to a flood in Costa Rica. This entry belongs to the ___________ category.
What quarterly contribution will the company : What quarterly contribution will the company need to make for the next 20 years to meet its obligation? Assume money always earns 4% annually.
What is the annual rate of return being earned : You invest $150,000 today and receive quarterly annuity payments in arrears for 10 years in the amount of $3,000. What is the annual rate of return being earned
Receive payments under the contract to the bank : How much will the bank be willing to pay Shippon currently if Shippon assigns its rights to receive payments under the contract to the bank?
What is your total return on this investment : Suppose you are a U.S. investor who is planning to invest $125,000 in Japan. What is your total return on this investment?
List the risk-return trade off in ascending order : List the risk-return trade off in ascending order of the following securities. Earning a higher return in your long-term savings

Reviews

Write a Review

Financial Management Questions & Answers

  What is expected rate of return

Dalton Inc has 13.1% return on equity, retains 56% of income for reinvestment, paid dividend of $3.50 and stick is stock is selling for $41.00. A- What is the growth rate? B- What is expected rate of return? C-If you require a required rate f return ..

  Do they have too much insurance

Consider the Sampsons' homeowner's insurance. Do they have enough insurance? Do they have too much insurance? Is increasing their deductible well advised?

  What are the break-even stock prices at expiration

What are the break-even stock prices at expiration?

  Liability insurance states

An example of a non-insurance transfer is. Liability insurance states that

  You observe yield curve for discount or zero-coupon

You are considering investing in11% coupon rate bond with three-year maturity and a face value of $1000. You observe yield curve for discount or zero-coupon

  What will happen to the price of the? bond

How much will the coupon payments be of a 20?-year $1,000 bond with a 9.5?% coupon rate and quarterly? payments? A $5,000 bond with a coupon rate of 5.5?% paid semiannually has ten years to maturity and a yield to maturity of 6.6?%. If interest rates..

  Determine the internal rate of return for the project

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $33,000 for the next 4 years. The firm's cost of capital is 12%. Determine the internal rate of return for the project to the ..

  Risky should have to earn internal rates of return

To be accepted, projects that are unusually risky should have to earn Internal Rates of Return that are ____ those earned by a firm’s typical projects.

  How does bond price change with the bond term

How does bond price change with the bond term? What is the difference between the dirty price and the clean price of a bond?

  New state-of-the-art cancer treatment center

ABC Hospital invests $11,995,000 in the development of a new state-of-the-art cancer treatment center. Based on their estimates, the first year cash flow will be $2,000,000, the second year cash flow will be $4,000,000, the third year cash flow will ..

  What is the risk-neutral value of the call option

A stock is currently priced at $43. The stock will either increase or decrease by 20 percent over the next year. There is a call option on the stock with a strike price of $40 and one year until expiration. If the risk-free rate is 2 percent, what is..

  Corporate finance class

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Assume that Schenkel uses cumulati..

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