Plan to buy a house

Assignment Help Financial Management
Reference no: EM131341373

You plan to buy a house in 15 years. you want to save money for a down payment on the new house. You are able to place $286 every month at the end of the months into a savings account at an annual rate 11.43% compounded monthly. How much money will be in the account after you made the last payment?

Reference no: EM131341373

Questions Cloud

What is the present value of the annuity : What is the present value of a $536 perpetuity discounted back to the present at 11.92 percent. What is the present value of the following annuity? You plan to apply for a loan from Bank of America. The nominal interest rate for this loan is 9.56 per..
Same yield-price plane with yield on the horizontal axis : Consider a bond (bond1) which matures in 30 years and a bond (bond2) which matures in 15 years. Both have a facevalue $100 and semi annunal coupon payment of 7%(2). Draw the price yield curves for bond1 and bond2 on the same yield-price plane with yi..
Afirms dividends have grown over the last several years : Afirms dividends have grown over the last several years. 6years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $7. What is the average annual growth of dividends.
What is present value of the annuity : What is the present value of the following annuity? $2,955 every year at the end of the for the next 10 years, discounted back to the present at 10.56 percent per year, compounded annually? Round the answer to two decimal places.
Plan to buy a house : You plan to buy a house in 15 years. you want to save money for a down payment on the new house. You are able to place $286 every month at the end of the months into a savings account at an annual rate 11.43% compounded monthly. How much money will b..
What is meant by pure play approach to estimating : It seemed like she was causing troubles wherever she went. At her previous job, Wendy had successfully persuaded the top management to implement a system that recognizes the differential risks for different divisions and evaluate projects based on ri..
What is the npv break-even level of diamonds sold per year : Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $160. The materials cost for a standard diamond is $60. What is the accounting break-even level of sales in terms of number of diamonds sold? What is the ..
Invest in a risk-free pure discount bond : Today is 01/01/02. On 06/30/03 we will have to make a payment of $100. We can only invest in a risk-free pure discount bond (nominal $100) that matures on 12/31/02 and in a risk-free coupon bond, nominal $100, that pays an annual coupon (on 12/31) of..
European call option contracts : You take a short position in 100 European call option contracts, with strike price $50 and maturity three months, on a stock that is trading at $52. The annual volatility of the stock is constant and equal to 22%. The annual, continuous risk-free int..

Reviews

Write a Review

Financial Management Questions & Answers

  Which project has the higher net present value

Which project has the higher net present value? - If the firm has no capital constraints, which project would you select?

  Current increase in our market capitalization

Be sure to frame your response using the discounted cash flow model as a starting point for your analysis. The maximum length of your report should not exceed two pages

  Expected return given these three economic states

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.24 33 % Slow growth 0.52 7 Recession 0.24 –40.

  Determine the balance of the account at the end of years

Equal deposits of $1000 are made at the end of each quarter in an account which earns 9.25% compounded monthly for 18 years. Using the nominal rate from part b, determine the balance of the account at the end of 18 years.

  What is the expected return for the dow jones

The Dow Jones Industrial Average had the following annual returns: Year: Return 2010: 11.02% 2011: 5.53% 2012: 7.26% 2013: 26.50% 2014: 7.52% Using just these 5 years of data, what is the expected return for the Dow Jones? What is the standard deviat..

  Current yield on your bond investment at time of purchase

Assume you purchased a high-yield corporate bond at its current market price of $925 on January 2, 2004. It pays 6.75 percent interest and it will mature on December 31, 2013, at which time the corporation will pay you the face value of $1,000. (a) D..

  Fully depreciated by the straight-line method

Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $993,000, and its economic life is five years. The machine will be fully depreciated by the straight-line method. The corp..

  Comparative advantage in the interest rate for both entities

Bank A prefers borrowing at a floating rate while a non-financial firm prefers borrowing at a fixed rate. However, the fixed and floating rate facing the bank is 3% and 3-month LIBOR plus 8 basis points, respectively, while the fixed and the floating..

  Present value of growth opportunities

Huron Manufacturing plans to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent. What is the present value of growth opportunities (PVGO)?

  Sinking fund for retirement by contributing

A person establishes a sinking fund for retirement by contributing $2000 at the end of each quarter for 25 years. For the next 20 years, equal quarterly payments are withdrawn, at the end of which time the account will have zero balance. If the money..

  The project using all three methods using interest rates

Chamberlain Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 9 percent and a reinvestment rate of 6 percent on all of its projects. Year Cash Flow 0 –$ 16,200 1 7,300 2 8,500 3 8,100 4 6,900 5 – 4,300. ..

  What is the implied peso borrowing rate

You have a line of credit for $1,000,000 at 4% for six months from Bank of America. You need to borrow 10,000,000 Mexican Pesos for six months. The spot FX rate is 13 P/$ and the 6-month forward rate is 13.25 P/$. All interest rates are quoted on an ..

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