Entire balance in her account to invest in investment

Assignment Help Financial Management
Reference no: EM131052280

Beverly Hills started a paper route on January 1, 2009. Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly. On December 31, 2012, she used the entire balance in her account to invest in an investment at 7 percent annually.

How much will she have on December 31, 2015? Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations.( Round your final answer to 2 decimal places.)

Future Value                    $.......

Reference no: EM131052280

Questions Cloud

What is the bonds yield to maturity : Yield to maturity a bonds market price is $800. it has a !1,000 par value, will mature in 8 yrs, and has a coupon interest rate of 11 % annual interest, but makes its interest payments semi-annually. What is the bonds yield to maturity?
Explain how accounts payable affects external funds required : There is an expression that it is best to operate a business using “other people’s money.” Given that other people’s money is reflected in accounts payable, explain how accounts payable affects the external funds required (EFR).
What is present value of perpetuity : After grad you worked on Wall Street made. Fortune & now wish to endow a professorship here at Morgan. You'd like endowment to pay 10000 forever. If appropriate interest rate is 6.7% what is the present value of perpetuity?
What is the net cash flow of the project : Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,430,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2,260,000 in a..
Entire balance in her account to invest in investment : Beverly Hills started a paper route on January 1, 2009. Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly. How much will she have on December 31, 2015? Use Appendix A and Appendix C ..
What were the other administrative expenses : The New Fund had average daily assets of $2.6 billion in the past year. New Fund’s expense ratio was 1.5% and the management fee was 1.0%. What were the total fees paid to the fund’s investment managers during the year? What were the other administra..
Common stock valuation problem : COMMON STOCK VALUATION PROBLEM The Fast-Growth Company recently paid a dividend of $3.20 per share. Analysts expect the dividend to grow at the rate of 28% per year for 3 years, then by 16% for 3 more years, before converging to the industry median g..
Calculate the firms the operating profit margin : Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm’s the operating profit margin. Round the answers to two decimal places in percentage form. (Write the percentage sign..
Long term certificate of deposit : You need $28.974 at the end of 10 years, and your only investment outlet is an 8% long term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. What single ..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Assume a required rate of return on this bond

What is the value of a bond that has a par value of $1000, a coupon rate of 17.24% (paid annually), and that matures in 8 years. Assume a required rate of return on this bond is 13.53%.

  What is the value of the stock

A dividend was issued of $3.75 per share. Expected growth of 20% for next 5 years. after that the growth rate is expected to be 6% forever. If investors require a return of 8% for investing in the stock of companies of similar risk, what is the value..

  Take advantage of a long term investment opportunity

Let's say that a company has actually reformed relatively well long term and an investor has reformed research and has made a decision to invest in a dividend paying organization. However, instead of aying out an increased dividend amount giving inve..

  Compute the present value of a growing perpetuity

Calculate the present value of a growing perpetuity that makes one payment per year with the first payment, made in exactly one year from now, being $1000. Let the payments grow at an annual rate of 9.9 percent (g = .099).

  What are the tax consequences for CFO

On 1 of January 2013 ABC Company announced Stock options for the CFO at the price of $25 a share - 1000 shares. The exercise time is from January 2013 till January 2015. These are NSO and he buys them on March 2014 when the marker price is $30 a shar..

  Estimated cost of debt-equity capital for various proportion

A company has estimated cost of debt and equity capital for various proportions of debt in its capital structure with these estimates how would one determine an optimal capital structure, how would one begin to formulate this answer using what exactl..

  Annual rate of return from both dividends-capital gains

Josh purchased 100 shares of XOM for $76.63 per share at the beginning of 2007. He received dividends per share of $1.37 (2007), $1.55 (2008), $1.66 (2009), $1.74 (2010), $1.85 (2011). At the end of 2011, just after receiving the last dividend, he so..

  Investors expect microtech to begin paying dividends

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $1.50 coming 3 years from toda..

  What amount as total capital for the partnership

The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, 2014, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. Based on this information, the statem..

  What is the cost of goods sold for lambda corporation

Lambda Corporation has current liabilities of $420,000, a quick ratio of 1.5, inventory turnover of 4.0, and a current ratio of 3.0. What is the cost of goods sold for Lambda Corporation?

  Operating assets is considering the purchase of a machine

A company with $825,000 in operating assets is considering the purchase of a machine that costs $87,000 and which is expected to reduce operating costs by $19,000 each year. These reductions in cost occur evenly throughout the year. The payback perio..

  What does the bond currently sell for

A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semi annually at a 10% annual rate. What does the bond currently sell for?

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