+1-415-670-9189
info@expertsmind.com
Personal financial management
Course:- Financial Management
Reference No.:- EM13238




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

You have recently won the UniSA "log tossing" competition. The prize of $200 is supposed to be used to buy a 50-year subscription to "Log News" This appears to represent a considerable saving on the normal subscription of $4.25 per half year, payable at the beginning of each half year with the first subscription due now. However, as a financial management student you figure that you may be better off by investing the prize money in your savings account which pays interest at an annual effective rate of 8% p.a. and paying the half yearly subscriptions from that account.

(a) How much (if anything) will you have left over each half year if you adopt the latter course of action?

(Note: If you received from your account an equal amount every half year starting at the beginning of the first half-year, from which you paid the normal subscription, how much would you have left over each half year?)

(b) Assuming you adopt the latter course of action, could you afford to pay to attend the World Log Tossing Convention when you retire in 40 years from now when the registration is expected to cost $1,850 at that time? 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Wombat+Wombat is a well-established creative design agency located on the East Coast. It has experienced very stable growth in both earnings and dividends over the past 10 yea
What does this function imply about the effect of the law of the law of diminishing returns on Kelson's short-run cost function and calculate the marginal cost of production
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $62.00, (b) $83
The possibility that more than one discount rate can cause the net present value of an investment to equal zero is referred to as: A stock has paid dividends of $1.70, $1.85,
A firm's goal is to maintain a 75% debt-equity ratio. How much equity would be required if the results of a financial planning model indicate that the firm's assets will grow
You just acquired a mortgage in the amount of $249,500 at 6.75 percent interest, compounded monthly. Equal payments are to be made at the end of each month for thirty years. H
HVAC is an acronym for “heating, ventilation and air conditioning.” American Metals operates a foundary in Birmingham, Alabama, where they make aluminum cast parts. Foundaries