User Account

All Pages

What will be his consumption next year

Assignment Help Finance Basics
Reference no: EM132003209

Mr. Free has $100 income this year and zero income next year. The market interest rate is 10 percent per year. If Mr. Free consumes $30 this year and invests the rest in the market, what will be his consumption next year?

Reference no: EM132003209

Questions Cloud

Figure out the ability of the management to manage : Figure out the ability of the management to manage their fixed and total assets in 2017 compared to 2016.
What is the npv of the investment opportunity : Suppose Mr. Dell consumes $50 this year and invests in the project. What is the NPV of the investment opportunity?
Senate armed services committee : Blackstone Program $450 million, while the Senate Armed Services Committee is still considering what action to take. At this point, DoD should appeal to the:
What is the price of the stock : After that the dividends will increase at a rate of 5% per year. If the last dividend was $1 and the required return rate is 20% what is the price of the stock?
What will be his consumption next year : If Mr. Free consumes $30 this year and invests the rest in the market, what will be his consumption next year?
What is the npv of investment : If the appropriate discount rate is 17.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?
What is the payback period : Its cost of capital is 16 percent. What is the payback period for this project (rounded to one decimal place)?
What is the present value : What's the present value of a 4-year ordinary annuity of $5,000 per year plus an additional $2,500 at the end of Year 4 if the interest rate is 4%?
Nominal annual interest rate : If you just deposited $4,000 in a bank account that pays a 2.0% nominal annual interest rate, compounded quarterly.

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare the historical average and standard deviation

Using 2014 financial statements from your stocks above and equations from your textbook, prepare the Historical Average and Standard Deviation for each stock.

  Compute accumulated money for your retirement

You have accumulated some money for your retirement. You are going to withdraw $63, 260 every year at the end of the year for the next 19 years.

  Should the item be mts or mto

The cost of holding inventory for a product is about 16 cents per month. The annual demand for this product is about 150 units. The set-up cost is $145.

  Which ratio is an exception to this statement

Net earnings before deducting minority share of earnings is utilized in the following ratios, since noncontrolling interests are included in the base. Which ratio is an exception to this statement?

  Current rate of interest

What is the market price of a $1,000 face value bond if the current rate of interest is 12.9%?

  Discuss on efficient markets hypothesis

Discuss on efficient markets hypothesis thus we can simply pick mutual funds at random Is this statement true or false

  Plan permitting

Considering Rachel has never taken a plan loan before, determine the maximum loan Rachel can take, plan permitting?

  Shipment will be rejected by the contractor

What is the probability that a shipment will be rejected by the contractor based on the results of the sample of 20 circuits that are tested?

  How is the amortization schedule

If bonds issue at a discount, what happens to the carrying value of bonds payable and the amount recorded for interest expense over time?

  Determine expected return from investment

Your expectations from a one year investment in HiTech Computers is as follows and determine the expected return from this investment

  Calculate the budgeted total labour cost for july

Suppose, for example, that an 80% learning curve applies to production of item ABC. Calculate the budgeted total labour cost for July.

  At what price would the bonds sell

Suppose that 2 years after the initial offering, the going interest rate had risen to 12%. At what price would the bonds sell?

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