How much interest will you have accumulated at end of year

Assignment Help Financial Management
Reference no: EM131176678

The preceding problems can be solved using the interest tables supplied in Appendix A. To test your ability to construct your own interest factors or to use a financial calculator, solve the following problems. a) You place $1,300 in a savings account that pays 5.3 percent annually. How much will you have in the account at the end of six years and three months? b) You invest $1,000 annually for seven years and earn 7.65 percent annually. How much interest will you have accumulated at the end of the seventh year? c) An investment promises to pay you $10,000 each year for ten years. If you want to earn 8.42 percent on your investments, what is the maximum price you should pay for this asset? d) You bought a stock for $10 a share and sold it for $25.60 after 51⁄2 years. What was your annual return (rate of growth) on the investment? e) You can earn 7.2 percent annually; how much must you invest annually to accumulate $50,000 after five years?

Reference no: EM131176678

Questions Cloud

Different types of health insurance benefits packages : What are the advantages and disadvantages of different types of health insurance benefits packages that you have participated in or know about?
Personality implies that individual patterns : 1. In psychology, the term personality implies that individual patterns of behavior are both
Describe the basic tenets of each religious tradition : Explain the basic tenets of each religious tradition, and how they define an individual's role in the world and his/her relationship with the deity. For each, include two examples of art which that tradition influenced.
Should it differ by the population using the drugs : How has the issue of drug addiction and the ‘war on drugs' changed over the past 20 years? In particular, how have the populations impacted by drugs changed? Is drug addiction treated as a crime or as a medical issue in our society? In your inf..
How much interest will you have accumulated at end of year : The preceding problems can be solved using the interest tables supplied in Appendix A. To test your ability to construct your own interest factors or to use a financial calculator, solve the following problems. You place $1,300 in a savings account t..
What are the pros and cons of parole : What are the pros and cons of parole. Discuss ways to improve parole so that offenders have a better chance of being successful in the community. What are the barriers that parolees face when they return to the community that contribute to them faili..
What are some of the challenges an organization faces : What are some of the challenges an organization faces when its management is not steady and their possible solutions?
Identify an organisation with product : Identify an organisation with product or service portfolios that span multiple business units and in your discussion define, with reference to scholarly articles, the term "corporation".
Challenges an organization faces : What are some of the challenges an organization faces when its management is not steady and their possible solutions?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Analyzing a projects incremental cash flows

According to the _________, analyzing a project's incremental cash flows allows the project to be evaluated independently from the firm and judged on its own merits.

  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..

  Statement of changes in net position-budgetary resources

The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the beginning of fiscal year 2014.   Prepare the following month-end statements: balance sheet, statement of net costs, statement of chang..

  What is basis for the exchanged properties combined whole

Vern owned farm acreage he inherited several years ago. There was no building nor improvement to the land. He decided to sell the farm in an exchange and acquired two rental houses. What is the basis for the exchanged properties combined as a whole? ..

  Increase the attractiveness of the stock in free market

The board of directors of API, a relatively new electronics manufacturer, has decided to beginning paying a common stock dividend to increase the attractiveness of the stock in the free market. what is the current value of API's common stock? If the ..

  Weighted average cost of capital

Boyd & Bunge Inc. has earnings before interest and taxes of $149,000. Both the book and the market value of debt is $265,000. The unlevered cost of equity is 13.5% while the pre-tax cost of debt is 9%. The tax rate is 34%. What is Boyd & Bunge’s weig..

  What is the value ofthe stock if the required rate of return

A stock just paid an annual dividend of $2. The dividends are expected to grow at 20%per year over each of the next three years and 5% per year thereafter. What is the value ofthe stock if the required rate of return is 12%?

  What is the stock expected capital gains yield

If D1 = $2.50, g (which is constant) = 7%, and P0 = $45, what is the stock's expected capital gains yield for the coming year?

  What percentage of value should be allocated to equity

What percentage of value should be allocated to equity in WACC computations for a firm with $60 million in debt selling at 85% of par, $70 million in book value of equity, and $50 million in market value of equity?

  Opened several retail health insurance stores

Blue Cross Blue Shield of Florida (Florida Blue) has opened several retail health insurance "stores" around the state. Florida Blue has historically and continues to rely on intermediaries (agents, brokers, wholesalers) for their sales. How seriously..

  What will the price be in five years and in fourteen years

Anton, Inc., just paid a dividend of $3.25 per share on its stock. The dividends are expected to grow at a constant rate of 4.75 percent per year, indefinitely.  What is the current price? What will the price be in five years and in fourteen years?

  Product and accounts for costs using a job cost system

Tappan, Inc., manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation's books and records for the year ended December 31, Year 1:

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