Your account immediately after your parents final deposit

Assignment Help Financial Management
Reference no: EM131859758

Your parents tell you that if you apply yourself and earn a minimum grade of B - in Finance 3101, they will reward you by depositing in your account $2,050 next year, $3,500 the following year and $4,500 the year after that. If you can earn an annual rate of 6%, how much would you have in your account immediately after your parents' final deposit?

Your parents have promised you possible deposits of $2,050, $3,500 and $4,500 at the end of the next three years, respectively. If your parents can earn 4% per year, what size of a one-time deposit would they have to make today in order to keep their promise?

A security that promises to pay annual interest or $250 forever and has an annual interest rate of 7% would have a price of You deposit $200 at the end of each of the next 17 years earning 5.25% per year. What would your balance be at the end of the 17 years?

Reference no: EM131859758

Questions Cloud

Calculate the price of six-month put futures option : Calculate the price of a 6-month put futures option with a strike price of 75.
Standard deviation of stock returns for five-year period : The average return of the stock for the 5-year period was 13 percent. What is the standard deviation of the stock's returns for the five-year period?
Monitor the business performance against budge : How to monitor the business performance against the budge?
What would be your fixed monthly loan payment : You borrow $150,000 for 30 years at an annual rate of 3.60%.. What would be your fixed MONTHLY loan payment?
Your account immediately after your parents final deposit : If you can earn an annual rate of 6%, how much would you have in your account immediately after your parents' final deposit?
Expected inflation-securities risk and liquidity : What is the relationship between market interest rates, borrowers’ need for capital, expected inflation, securities’ risk and liquidity?
Exactly one year after the initial deposit : The account has an interest rate of 9.2 % p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)?
What interest rate must she earn on her investment : What interest rate must she earn on her investment (that is, if she deposits $ 10,852.20 today) to have $ 12,404.90 exactly two years from today?
How much will there be in your account at the end of year : How much will there be in your account at the end of year 2 if the interest rate is 9 percent p.a.?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the investor irr and cash on cash gain

What is the investor IRR and cash on cash gain?

  Expectation theory of the term structure of interest rates

According to the unbiased expectation theory of the term structure of interest rates, what are the expected 1-year forward rates for years 4, 5, and 6?

  Describe in detail the development of the derivatives market

Describe in detail the development of the derivatives market in the United States. Describe in detail the development of the derivatives market in Japan.

  Monthly compounding rate

how much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6% monthly compounding rate?

  What is new fair forward price for delivery in eight months

Svenska BK (Swedish bank) enters into a forward contract with a customer to buy Krona (Swedish currency) for $1.25 (US currency) in six months time. After 6 months have gone by the spot exchange rate is now $1.36/Krona. The company asks you (Svenska ..

  The amount of money that you deposited today

You discover that at the end of one year you have $ 10,540 in the account. What was X, that is, the amount of money that you deposited today?

  Calculate the value of put if it had been european-style

Calculate the value of the Buffelhead American put. Calculate the value of the put if it had been European-style.

  Define the concept of term structure of interest rates

Define the six factors that determine the nominal interest rate on a security. Define the concept of term structure of interest rates. What are three theories that explain the future yield curve of interest rates

  The cost of common equity

Hank Corp.'s common stock currently sells for $29 per share. The cost of common equity, Re, is ____%.

  Actual prepayment penalty under the terms of the apartment

The actual prepayment penalty under the terms of the apartment building owner’s mortgage is 2% of the balance of the loan.

  The qualifier for a financial advisor

The qualifier for a financial advisor would be ________.

  What must the beta be for other stock in your portfolio

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.27 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?

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