What will be the first year award amount be

Assignment Help Financial Management
Reference no: EM131969710

In your will, you bequeath $6000000 into an account that earns 12% annually. The account will fund an annual award in perpetuity that will be given to a world leader who has excellent intentions to promote peace. If you want the award amount to increase by 7% every year, what will be the first year's award amount be?

Reference no: EM131969710

Questions Cloud

Hiring a healthcare information manager : What recruitment strategies might you implement toward hiring a Healthcare information manager?
Increased your contributions : how much less will you have in your account after 17 years than if you increased your contributions? Round your answer to the nearest dollar.
Interpret the function of the financial balance sheet : Interpret the function of the Financial Balance Sheet in assisting in management's decision making process.
Wrongful discharge claims against the company : Do Mindy and Fred have wrongful discharge claims against the company? If they were unaware of the rule against adultery, would your answer be any different?
What will be the first year award amount be : In your will, you bequeath $6000000 into an account that earns 12% annually. what will be the first year's award amount be?
What strategies did use to address your opponents viewpoints : What strategies did you use to address your opponents' viewpoints? What do you think are your greatest strengths of the essay and why?
Thomas-kilmann tool and win-win tool : Describe a situation when you managed a conflict using Thomas-Kilmann Tool and Win-wIn tool (Win-Win) - actively seeking
Roth started new job as controller with aerosystems : Ronald Roth started his new job as controller with Aerosystems today. What total medical costs will Ronald pay if he enrolls in the HMO plan?
In what sense or under what conditions might idea be true : What's interesting or helpful about this view? What would I notice if I believed this view? In what sense or under what conditions might this idea be true?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the economic ordering quantity

Diagnostic Supplies has expected sales of 136,900 units per year, What is the economic ordering quantity? What is the average inventory?

  What is nominal yield to maturity

What is their nominal yield to maturity? What is their nominal yield to call?

  Life insurance policy

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds.

  What is the total cost of treatment at the end of the year

What is the total cost of treatment at the end of the year at an interest rate of 12% per year compounded quarterly?

  What are two different explanations for similarity of price

Suppose you have a suit that needs altering, and you take it to three different tailors in the same mall to get an estimate of the cost of the alterations.

  How much wealth per share has been created

A new factory at Arcataa requires an initial outlay of $1 Million. Of this $1 Million, $400,000 Must be paid immediately and $200,000 will be paid at the end of each year for the next 3 years. Assume cash flows occure at year-end. At a 10 percent req..

  Based on the descriptions of customer lifetime value

Based on the descriptions of Customer Lifetime Value (CLV) in the textbook, can you identify a specific store or situation where you have a CLV?

  How are real options important in npv decisions

Explain how real options can cause an undervaluation by the NPV framework of company's projects?. How are real options important in NPV decisions?

  Repaid in equal annual payments

Four years ago $100,000 was borrowed at 14% per year compounded annually, to be repaid in equal annual payments over 20 years.

  Dividends instead of pursuing their growth strategy

In other words, starting on December 31, 2016, should the company pay out all of its earnings in dividends instead of pursuing their growth strategy?

  Calculate the quoted futures price for the contract

The conversion factor for the bond is 1.5. The current quoted bond price is $110. Calculate the quoted futures price for the contract.

  What is break-even point in unit sales and in dollar sales

What is the break-even point in unit sales and in dollar sales? What is the break-even point in unit sales and in dollar sales?

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