Interest received at end of period is reinvested next period

Assignment Help Financial Management
Reference no: EM13811529

You placed $9,560 in a savings account today that earns an annual interest rate of 4.84 percent, compounded semi annually. How much will you have in this account at the end of 5 years? Assume that all interest received at the end of the period is reinvested the next period.

Round the answer to two decimal places.

Reference no: EM13811529

Questions Cloud

Declare identifiers for grade point and letter grade : This program focuses on some basic elements of interactive programming as well as basic programming practices. Declare identifiers for grade point and letter grade. The grade point can be either an integer or a double
How much should he set aside today for the purchase : Stephen plans to purchase a car 3 years from now. The car will cost $45,148 at that time. Assume that Stephen can earn 9.95 percent (compounded monthly) on his money. How much should he set aside today for the purchase?
Calculate the value of a right-hares using rights issue : Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the subscription price is $47/share, calculate the value of a right.
Paper on an employee benefit issue facing organizations : write a position paper on an employee benefit issue facing organizations.
Interest received at end of period is reinvested next period : You placed $9,560 in a savings account today that earns an annual interest rate of 4.84 percent, compounded semi annually. How much will you have in this account at the end of 5 years? Assume that all interest received at the end of the period is rei..
Quality of education that an individual receives : What factors influence the quality of education that an individual receives? How is social class reproduced through the educational system? How is this continuing educational inequality impacting other social institutions?
What amount will the following investment accumulate : To what amount will the following investment accumulate? $26,580, invested today for 3 years at 18.77 percent, compounded monthly.
Explaining basic forensic procedures : Write a 1-page summary explaining basic forensic procedures and how they can be applied to your future IT career.
Plans to increase production at a rate : Cooling Tools, Inc. is currently producing 978 of small refrigerators per month but the company’s CEO plans to increase production at a rate of 7.60 percent per month until the firm is producing 5,555 of refrigerators per month. How many months will ..

Reviews

Write a Review

Financial Management Questions & Answers

  Debt and common stock

A firm has determined its optimal structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face valu..

  Two projects are mutually exclusive

For a project to have more than one IRR, then both IRRs must be greater than the WACC. If two projects are mutually exclusive, then they are likely to have multiple IRRs. If a project is independent, then it cannot have multiple IRRs.

  Material ordering costs-labor costs and credit sales

Write a memo to your supervisor explaining the cash conversion cycle at your company, a manufacturer of plastic toys. Be sure to address the following: Material ordering costs, Labor costs, Credit sales (accounts receivables), Accounts payable and wa..

  Find the cost of a break even analysis for a gym

How would I find the cost of a break even analysis for a gym and if it was reasonable for them to add a smart phone application?

  Calculate the annuity that has same present value

Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $1,830,000 and will last for 5 years. Variable costs are 37 percent of sales, and fixed costs are $152,000 per year. Machine B costs $4,440,..

  Value of put option at expiration as function of stock price

Consider a European call option that enables you to buy a share of stock at $K at time T, a European put option on the same stock with the same strike and expiration, a zero coupon bond which pays $K at time T. Graph the value of the put option at ex..

  What is the least risky security-portfolio be riskless

Would your portfolio be riskless? Explain. Now suppose the portfolio consists of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you will reinvest the principal ($250,000) in a new batch of bills. You plan to live on the inves..

  Problem in a world with corporate taxes what happens when

problem in a world with corporate taxes what happens when the firm adds debt to its capital structure?lucky bamboo is a

  What is the annual percentage rate on your account

What is the future value of $1,210 a year for 7 years at a 9 percent rate of interest? ne year ago, the Jenkins Family Fun Center deposited $4,700 in an investment account for the purpose of buying new equipment four years from today. Today, they are..

  Expect to earn an average return

Janice plans to save 75$ per month, starting today, for 20 years. Kate plans to save 80$ a month for 20 years, starting one month from today. Both Hanice and kate expect to earn an average return of 5.5 percent on their savings. At the end of the 20 ..

  What is the economic or npv break-even number of books

KMW Inc. sells finance textbooks for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of three years. What is the economic or N..

  Estimate of the net present value

An analysis of what happens to the estimate of the net present value when you examine a number of different likely situations is called _____

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