Future value annuity-retirement account

Assignment Help Financial Management
Reference no: EM131010472

Future Value Annuity You are planning to make monthly deposits of $400 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now. how large will your retirement account be in 30 years?

Reference no: EM131010472

Questions Cloud

Estimated value of operation : EMC Corporation has never paid a dividend. Its current free cash flow of $400,000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC=12%. Calculate EMC's estimated value of operation.
Clearly identify the requirements being addressed : Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your t..
Three deposits have added to your nest-egg : Assume that, to help build your nest-egg, you made two deposits of $100, one on January 1, 2013, and one on July 1, 2013, in a savings account that paid 10 percent compounded semiannually. Then you made a third S100 deposit on April 1, 2014. How much..
What is the probability of each simple event : Two of these students are to be randomly selected for inclusion on a university-wide student committee (by placing ?ve slips of paper in a bowl, mixing, and drawing out two of them). What are the 10 possible outcomes (simple events)?
Future value annuity-retirement account : Future Value Annuity You are planning to make monthly deposits of $400 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now. how large will your retirement account be in 30 ..
Savings account-how much money will you receive : You deposited $1,000 in a savings account that pays 8 percent interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather tha..
Who are you as a future role model : A video presentation for a science classroom that is designed to teach students how to use character to accomplish tasks through teamwork.
What is the future value of your windfall in three years : You have just received a windfall from an investment made in a friend's business. He will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at the end of the year after that (three years from today)...
Future value annuity : Future Value Annuity At the beginning of each period, you are planning to make annual deposits of $4,800 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made today, how large will your retirem..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the lenders yield rate on this entire investment

A twenty-year loan of $25000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $1500 will apply during the first ten years, and a higher level payment will apply over the remaining ten years. What is t..

  What is the price of the stock five years from now

O'Leary Corporation's last dividend paid was $1.00. Dividends are expected to grow at a rate of 17% this year, 15% next year, 10% the following year and 5% thereafter. The required rate of return is 15%. What is the price of the stock 5 years from no..

  Explaining the pros and cons of each strategy

You think a stock’s price is going to fall. If you’re right, you could make money by. Write a few sentences explaining the pros and cons of each strategy.

  What is the component cost of debt

A few years ago the Kennette Company sold a $1,000 par value, non callable bond that now has 15 years to maturity and a 5.00% annual coupon that is paid semi annually. The bond currently sells for $920 and the company's tax rate is 40%. What is the c..

  What can you do to boost profits explain

An economist has estimated that, at the current price of $1.00per pill, the own price elasticity of demand for the drug is -0.5. Based on this information, what can you do to boost profits explain?

  How firms estimate their cost of capital the wacc for a

1.how firms estimate their cost of capital the wacc for a firm is 13.00 percent. you know that the firmrsquos cost of

  What is the purpose of outsourcing

What is the purpose of outsourcing? How can it be helpful to a company's growth? How can it be harmful? Give examples to support your answer.

  What is the projects equivalent annual cost or EAC

A 5-year project has an initial fixed asset investment of $19,740, an initial NWC investment of $1,880, and an annual OCF of -$30,080. The fixed asset is fully depreciated over the life of the project and has no salvage value. Required: If the requir..

  Making annual transfers equal to the gift exclusion

Oscar, aged 70, and Maggie, aged 60, are married and jointly own a personal residence valued at $3,800,000. Oscar also owns stocks valued at $4,700,000; an art collection valued at $1,400,000; a retirement account valued at $900,000 contributions ent..

  Preferred stock and debt-coupon bonds outstanding

You are given the following information concerning Parrothead Enterprises: Debt: 10,900 7.4 percent coupon bonds outstanding, with 21 years to maturity and a quoted price of 108.75. These bonds pay interest semiannually. Common stock: 320,000 shares ..

  Leveraged and unleveraged capital structure

Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 40,000 shares of stock. The debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt wi..

  Which stock should my sister add to her portfolio

Your sister is considering to add one additional stock to a three stock portfolio, to form a four stock portfolio. The three stocks currently held all have b=1.0, and they are perfectly positively correlated with the market. However, stock A's standa..

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