How much money will you have in the account

Assignment Help Financial Management
Reference no: EM131354563

If you deposit $4,000 per year for the next 20 years into an account paying 7%, how much money will you have in the account in 30 years? How much will you have if you make deposits for 40 years? FVa = A x FVaif

Reference no: EM131354563

Questions Cloud

What is expected return on portfolio : You own a portfolio that is 28 percent invested in Stock X, 20 percent in Stock Y, and 52 percent in Stock Z. The expected returns on these three stocks are 8 percent, 19 percent, and 15 percent, respectively. What is the expected return on the portf..
What is the maximum price division two will pay for product : Beakman, Inc. imposes a payback cutoff of 3 years for its international investment projects. If the company has the following two projects available, should it accept either of them? Division 1 does not have excess capacity to produce Product Y. The ..
The major factor affecting the cost or interest rate : The following information pertains to a segment of the Doggie Company. Invested capital is defined as total assets. The weighted average cost of capital is 10%. The ROI of the segment before the project is 20%. The ROI of the segment after the projec..
Walmart issues bond with par value : Suppose Walmart issues a bond with a par value of $1,000 10 years to maturity and a coupon rate of 5% paid annually. If the yield to maturity is 6%, what is the current price of the bond?
How much money will you have in the account : If you deposit $4,000 per year for the next 20 years into an account paying 7%, how much money will you have in the account in 30 years? How much will you have if you make deposits for 40 years? FVa = A x FVaif
Contribution to retirement account : You have just made your first $10,000 contribution to your retirement account. Assuming you earn 10% per year and make no additional contributions. What will your account be worth when you retire in 40 years? What if you wait 10 years before contribu..
Second city bank account at the end of seven years : First City Bank pays 10% simple interest on its savings account balances, whereas Second City Bank pays 10% interest compounded annually. If you made a deposit of $10,000 in each bank, how much money would you earn from your Second City Bank account ..
Anticipated future leadership development projects : What is the main topics and points of interest that were of particular value to you personally. Also discuss any gaps or challenges in implementing anticipated future leadership development projects in your vocation or ministry.
How is foreign exchange risk sensitivity factored : How is foreign exchange risk sensitivity factored into the capital budgeting analysis of a foreign project? What are the main rights of the two main claims on firms? If a bank has $1 million of deposits, a required reserve ratio of 20 percent, and $3..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the value of a share of dupont series

Determine the value of a share of DuPont Series A $4.50 cumulative preferred stock, no par, to an investor who requires a 9 percent rate of return on this security.

  What is the effective cost of borrowing in the case

Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a 1.00 percent discount.

  Explain the expected rate of return for each investment

Johnson Manufacturing, Inc. is considering several investments. The rate on Treasury bills is currently 7.5% and the expected return for the market is 13%. What should be the expected rate of return for each investment (using the CAPM)?

  What is the company debt-equity ratio

Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 11 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company's debt-equity ratio?

  Compute the crossover rate

XYZ Airways is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows: Year Project A Project B 0 -$42,000 -$45,000 1 14,000 28,000 2 14,000 12,000 3 14,000 10,000 4 14,000 10,000 5 14,000 10,..

  What is the present value of the technology

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $169,000 received two years from today. What is the..

  Compare the two hedging strategies based

The current price of gold is $1,600 per troy ounce. There are no storage costs. The risk free rate of interest is 5% continuously compounded. What is the forward price of gold with delivery in 3 months? Calculate the cost of a collar, with 3 months t..

  Real risk-free rate-maturity risk premium is zero

Assume the following: The real risk-free rate, r*, is expected to remain constant at 3%. Inflation is expected to be 3% next year and then to be constant at 2% a year thereafter. The maturity risk premium is zero. Given this information, which of the..

  Finance expansion during the current fiscal year

Schooner Yachts is a closely held company that was founded in 1970 by Russ Breaker to build a top-quality line of sailboats. The company’s debt ratio is 48 percent, compared to an average ratio of 36 percent for sailboat companies in general. Schoone..

  The opportunity cost of retaining the old asset

Chris Technologies considering replacing one of its printed circuit board machines with one that is newer and more efficient. The firm purchased the machine 10 years ago at a cost of $150,000. The opportunity (investment) cost of retaining the old as..

  Suppose an investment offers to triple your money

Suppose an investment offers to triple your money in 36 months (don’t believe it). What rate of return per quarter are you being offered? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Average risk investment in a mineral water spring project

The Rodriquez Company is considering an average risk investment in a mineral water spring project that has a cost of 150,000. The project will produce 1,000 cases of mineral water per year indefinitely, the current sales price is $138 per case and th..

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