How much would it have had to deposit

Assignment Help Financial Management

Reference no: EM13953739

The Ajax Co. just decided to save $1,500 a month for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest compounded monthly. It deposits the first $1,500 today. If the company had wanted to deposit an equivalent lump sum today, how much would it have had to deposit?

Please show work.

a. $82,964.59

b. $83,189.29

c. $83,428.87

d. $83,687.23

e. $84,998.01

Reference no: EM13953739

Questions Cloud

What are the arithmetic and geometric average returns : What are the arithmetic and geometric average returns for a stock with annual returns of 22 percent, 9 percent, –7 percent, and 13 percent? List the arithmetic answer first.

What is the beta of this stock : The common stock of Flavorful Teas has an expected return of 16.35 percent. The return on the market is 13.5 percent and the risk-free rate of return is 4.0 percent. What is the beta of this stock?

Market research purchased as well as the income statement : In a 500 word essay how you analyzed your results from the previous decision period using the Market Research purchased as well as the Income Statement, Dashboard, and other tools available to you. Explain how you can apply the information and use of..

Balance sheet-statement of cash flows for the year ended : The balance sheet for December 31, 2011, income statement for the year ended December 31, 2011, and the statement of cash flows for the year ended December 31, 2011, of Bernett Company are shown in the following balance sheet.

How much would it have had to deposit : The Ajax Co. just decided to save $1,500 a month for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest compounded monthly. It deposits the first $1,500 to..

What is the cost of the trade credit : Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60. If you pay the bill on the 14th day after the purchase, what is the cost of the trade credit you have used for the 14-day period? If you pay the bill on the 50th day after..

What is the present value of the common stock : A company's recent dividend is $1 per share. The company expects that the dividends will grow at 10% for the next three years. After that the dividends will increase at 5% forever. Its stock beta is 1.0. Currently, the expected market return is 12%, ..

What is the advantage of using forward contracts : Suppose that you are a financial manager of a company that exports mainly to England. You expect to receive a huge payment in British pounds from your customer in a couple of months. To avoid the potential adverse move of British pound, you have deci..

An increase in the discount rate of a stock : Other things held constant, an increase in the discount rate of a stock will result in an increase in its price. Other things held constant, a decrease in the cost of capital will result in an increase in a project's payback period.

User Account

All Pages