What would your ending balance be 10 years after

Assignment Help Financial Management
Reference no: EM132018030

Suppose you put $200 into a savings account today, the account pays a nominal annual interest rate of 6 percent, but compounded quarterly and you withdraw $200 after 3 months.

What would your ending balance be 10 years after the initial $200 deposit was made? (FV)

Reference no: EM132018030

Questions Cloud

What is the portfolios equilibrium expected return : The risk-free rate is 4% and the expected return on a portfolio with unit sensitivity (sensitivity equal to 1) to the factor is 7%.
What is your obligation when you purchase this contract : What is your obligation when you purchase this futures contract? You are obligated to purchase a bond worth $ at contract maturity.
What will your roth account balance be at the end : You plan to leave these contributions and any interest and dividends earned in the account (and will reinvest in the bonds and stocks that you hold in this IRA)
How would such entities make capital budgeting decisions : What about the U.S. government? Should it evaluate spending proposals using these techniques? What could be the benchmark interest rate?
What would your ending balance be 10 years after : What would your ending balance be 10 years after the initial $200 deposit was made? (FV)
Identify the equivalent annual annuity : If the required rate of return is 6.50%, what is the equivalent annual annuity?
What is the probability that your return on this asset : The historical average annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent.
Which of the funds has an r-squared that does not make sense : Which of the funds has an R-squared that doesn't make sense given what you know about that measure? Why?
What is the standard deviation of the rate of return : Suppose you have a project that has a 0.5 chance of doubling your investment in a year and a 0.5 chance of halving your investment in a year.

Reviews

Write a Review

Financial Management Questions & Answers

  Portfolio with one-week standard deviation

You have $10m portfolio with a one-week standard deviation of 1%. You will add $10m of an asset to the portfolio. The one-week standard deviation of the return of the new asset is 1%. Compute the 95% $VaR of the original $10m, the 95% $VaR of the new..

  Ordinary annuities are common with leases

Ordinary annuities are common with leases and premiums paid to insurance companies because these cash flows usually occur at the beginning of the period. An IRR of 14% is better than an IRR or 12% (all other variables the same).

  What is the flotation cost charged by its investment banker

Halo Hot Air Balloons is expected to grow at 5 percent forever. Its common stock is currently selling for $28 per share, and the most recent dividend paid to common stockholders was $2.40 per share. If Halo’s cost of new common equity is 15 percent, ..

  Further slowdown in economic growth

You think that there will be a further slowdown in economic growth and you think that this will hit the retail industry.

  Calculate theoretical call option price

Given the following information, complete the problems #6 and #7. Stock Strike Days to Maturity Risk Free Standard Variance Price Price By Days in Year Rate Deviation of Return $22 $24 120/365 0.08 0.25 0.0625 42 40 50/365 .10 .23. Use the Black-Scho..

  What are the common stockholders residual claims to earnings

Wrecks Inc. has $20 million in earnings, pays $2.75 million in interest to bondholders, and $1.80 million in dividends to preferred stockholders. a. What are the common stockholders’ residual claims to earnings? b. What are the common stockholders’ l..

  Dow chemical had prepaid pension obligation

Dow Chemical had a Prepaid Pension Obligation of -$65; total assets of $27,645; and net income of $1,513, all for 2000. This means that:

  Consumer behavior-taxation and taxes summary

Taxes are an inevitable part of doing business. What's taxed, how it's taxed and rates affect many different kinds of companies.

  What is the present value of security

What is the present value of a security that will pay $7,000 in 20 years if securities of equal risk pay 9% annually?

  What is the weighted average cost of capital-tax bracket

A company plans a $14 million expansion. The expansion is to be financed by selling $6 million in new debt and $8 million in new common stock. The before-tax required rate of return on debt is 8% and the required rate of return is 16%. If the company..

  Compute book value per share

Compute book value per share. Compute the earnings per share. (EPS), Compute market value per share.

  The debt coverage ratio is the relationship between

The size of the annual debt service depends upon. The debt coverage ratio is the relationship between.

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