### Calculate the value of your savings at end of three years

Assignment Help Financial Management
##### Reference no: EM131341426

(a) You plan to save \$500 at the end of each month for the next 2 years. With the expectation of a pay raise, you want to save \$850 at the end of each month for 1 year after that. Assuming an interest rate of 1.5% per annum throughout the period of calculation, calculate the value of your savings at the end of 3 years.

(b) It has now been 5 years since you graduated and you plan to take time off to travel. For the next 18 months while you travel, you want to receive \$1,000 at the end of each month. Using an applicable interest rate of 2% per annum, how much should you invest in the annuity today?

#### Is cowen position more consistent with robert gordon

Writing in the New York Times, economist Tyler Cowen of George Mason University argued:- Is Cowen's position more consistent with that of Robert Gordon or that of Robert Higgs

#### Proposed acquisition of a new production machine

Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is \$200,000, and installation costs would amount to \$28,000. Als

#### What is the operating cash flow for the project in year two

You are evaluating a project for your company. You estimate the sales price to be \$250 per unit and sales volume to be 3,500 units in year 1; 4,500 units in year 2; and 3,000

#### Expected return on the minimum-variance portfolio

An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The

#### Required rate of return on the bond

A 10-year bond paying 8% annual coupons pays \$1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell (rounded to the nearest cent) f

#### Issues an annual bond-what is the yield to maturity

A firm issues an annual bond today with a \$1,000 face value, an 8% annual coupon interest rate, and 25-year maturity. An investor purchases the bond for \$900. What is the yiel

#### Calculate bep-roi-roe and tie ratios for fictitious firm

EBIT was \$55 million in 2016, and is expected to remain constant for 2017. The firm is all equity financed, and there are 15 million shares outstanding. The corporate tax rate

#### Take based on the time value of money

if I were to offer you \$5,000 today or \$10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order