homework, Financial Management

Assignment Help:
Homework

1. Suppose you deposit $18,000 into an account today that earns 6% interest per year, and you do not withdraw the money for 21 years. What will be the balance in the account 21 years from today?

2. Suppose for graduation, you receive a large present,Ê$10,000. You decide to put this in a mutual fund today, on your 20th birthday and withdraw it on your 65th birthday. If the average return of your portfolio is 12%, how much will be in your account at retirement?


3. Imagine that instead of depositing that $10,000 into a mutual fund, you deposited it into a savings account at your local bank, which offers a 1% annual interest rate. How much would you have at retirement under this condition?


4. An investment promises you a single cash flow of $40,000 25 years from today. If the annual discount rate is 4%, what is the investment worth today?


5. Suppose I offer you money. I will give you either $200 today, or $5,000 twenty years from today. If the discount rate over the next 20 years is 9%, which should you choose? Why?

Related Discussions:- homework

What do you mean by treasury bills, Q. What do you mean by Treasury Bills? ...

Q. What do you mean by Treasury Bills? Treasury bills (TBs) are short-term government securities. The usual practice in India is to sell treasury bills at a discount and redeem

Deseasonalizing a time series, Deseasonalizing a Time Series The Ratio...

Deseasonalizing a Time Series The Ratio to Average Method allows us to identify the component of the seasonal variation in time series data and the indices themselves help us

Determine about the entity level - inherent risk, At entity level - Inheren...

At entity level - Inherent risk Integrity of management. Management's experience and knowledge Over reliance on key customers. Unusual pressures on management

Debt financing in capital structure, Net Income approach says that a raise ...

Net Income approach says that a raise in the proportion of debt financing in capital structure results in an increase in the proportion of a cheaper source of funds. This in turn r

Calculate the net premium retrospective reserve value, Question: On 1st...

Question: On 1st October 2001 a man then aged 34 took out an endowment assurance policy with a sum assured of $100,000 payable on survival to age 50 or at the end of the year o

How could we obtain an indisputable discount rate, How could we obtain an i...

How could we obtain an indisputable discount rate? How should we calculate the beta and the risk premium? There is no indisputable discount rate: a discount rate is a subjectiv

#WALTOR''S MODEL., CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME...

CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME RATE OF RETURNS ON INVESTMENTS (R):15

Bond market innovations, As liberalization is gathering momentum, cor...

As liberalization is gathering momentum, corporate treasures and merchant bankers are in the process of devising new products to suit the needs of investors and c

Need for simulation, Need for Simulation If the mathematical model set...

Need for Simulation If the mathematical model set up could always be optimized by the analytical approach, then, there would be no need for simulation. Only when interrelation

Cash management control, I need a report on the topic Cash Management Contr...

I need a report on the topic Cash Management Control. Can you please assist me for Cash Management Control report for about 2500 words?

Write Your Message!

Captcha
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