Compounded quarterly

Assignment Help Financial Management
Reference no: EM13763905

Rick wants to send his son to University of Maryland 8 years from now. He estimates he will need $30,000 then. How much does Rick need to invest today, if his investment can grow by 5% per year, compounded quarterly?

Reference no: EM13763905

Questions Cloud

Define the decision variables and constraints : The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air condition takes 3 hours of wiring and 2..
Development life-cycle of organizations : Stage 5 of "The Development Life-Cycle of Organizations" is known as
Calculate the groupon campaign profit and loss : A local dental practice decides to run a Groupon campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $140. For the total campaign, 250 coupons were sold. Calculate the Groupon campaign profit/loss
Calculate the breakeven revenue for a new groupon customer : A local dental practice decides to run a Group on campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $150. For the total campaign, 250 coupons were sold. We estimate that 85% of the coupons will be redeemed, th..
Compounded quarterly : Rick wants to send his son to University of Maryland 8 years from now. He estimates he will need $30,000 then. How much does Rick need to invest today, if his investment can grow by 5% per year, compounded quarterly?
Total of all interest payments and sinking fund deposits : Phil borrows 1,000 for 5 years at a nominal annual rate of 6% convertible monthly. At the end of each month, he pays the interest on the loan and deposits the level amount necessary to repay the principal to a sinking fund earning a nominal annual ra..
Complete the contract and pay them a lump sum settlement now : Three years ago, Sam purchased a farm on contract from an older lady for $149,000 at 7% interest over 15 years. The lady died unexpectedly and the heirs would like Sam to pay off the contract now, which has a current remaining balance of $130,000 wit..
Accumulated value of an annuity certain : Accumulated Value of an Annuity Certain. Formula for annuity certain is ((1+j%/12)^60-1)/(j%/12)=66.67.... but no software can apparently solve this! An accumulated value of an annuity certain with n=60, and interest = j%/12, is equal to=66.67.........
What is the treynor ratio : A portfolio has an average return of 9.7 percent, a standard deviation of 8.6 percent, and a beta of .72. The risk-free rate is 2.1 percent. What is the Treynor ratio?

Reviews

Write a Review

Financial Management Questions & Answers

  What specific investment actions would you suggest

A hedge fund has a capital of $100 million and invests in a long/short strategy on the U.S. equity market, with a long bias. It follows a 150/50 strategy meaning 150% long and 50% short. Shares can be borrowed from a primary broker. The primary broke..

  Questiona describe concept of future value and present

questiona describe concept of future value and present value. b natasha has graduated from high school and has

  Explain the objectives of a budgetary control system

Identify and explain the objectives of a budgetary control system and discuss the concept of a participative style of budgeting.

  What is the value of the investment today

An investment offers $10,400 per year for 13 years, with the first payment occurring 1 year from now. Assume the required return is 12 percent.What is the value of the investment today? What would the value be if the payments occurred for 38 years?

  Interested in diversifiable risk or non-diversifiable risk

Assume that most investors put together a well-diversified portfolio, and mangers manage in the interest of the well diversified shareholder. Should the manager be more interested in the diversifiable risk or non-diversifiable risk a project brings t..

  Describe how society''s interests can influence financial

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations.

  Accumulate depreciation on the balance sheet

How does depreciation expense on the income statement relate to accumulate depreciation on the balance sheet?

  Compute the expected balance in accounts receivable

Prepare a schedule of cash collections for May through July and compute the expected balance in Accounts Receivable as of July 31.

  Stock has returns-what is the probability range

A stock has returns of 3%, 18%, -24%, and 16% for the past four years. Based on this information, what is the 95% probability range for any one given year?

  What will be cost of equity of xyz

What is XYX's cost of equity before the change in capital structure and what will be cost of equity of XYZ under the new capital structure?

  Interest versus dividend income during the year just ended

Interest versus dividend income During the year just ended

  What is the expected return on the market

The stock of Alpha Company has an expected return of 16.25% and a beta of 1.35, and Gamma Company stock has an expected return of 10.50% and a beta of X. The beta of a portfolio P is 1.05. The portfolio P consists of 40% of the investment in Alpha an..

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