Retirement account-how much will she have ten years later

Assignment Help Financial Management
Reference no: EM13872168

An individual has $110,000 in a retirement account. Each month she deposits $1,000 while earning 5% a year on her money. How much money will be in the account in 10 years? How much of this amount is due to the $110,000 that she began with and how much is due to the monthly payments of $1000? After ten years she begins to deposit $1200 a month while earning 4% a year, how much will she have ten years later?

Reference no: EM13872168

Questions Cloud

Partial vacuum in a reservoir : Figure is a sketch of an aspirator, a simple device that can be used to achieve a partial vacuum in a reservoir connected to the vertical tube at B. An aspirator attached to the end of a garden hose may be used to deliver soap or fertilizer from t..
Should a gain or loss on restructuring of debt be recognized : Should a gain or loss on restructuring of debt be recognized? Should a gain or loss on the disposition of assets be recognized?
Spartan has cumulative voting and straight voting : The shareholders of the Spartan Corp. are electing six individuals to serve as directors on their board. There are 3 million shares outstanding. How many shares would you need to hold to be certain that you can elect at least one director assuming th..
Calculate the ending inventory for mojo industries : Using the information in PB7-1, calculate the cost of goods sold and ending inventory for Mojo Industries assuming it applies the LIFO cost method perpetually at the time of each sale. Com-pare these amounts to the periodic LIFO calculations in requi..
Retirement account-how much will she have ten years later : An individual has $110,000 in a retirement account. Each month she deposits $1,000 while earning 5% a year on her money. How much money will be in the account in 10 years? How much of this amount is due to the $110,000 that she began with and how muc..
Define technical feasibility and organizational feasibility : Define business processes, roles, resources, and data flows. Define technical feasibility and organizational feasibility
How much will the bank earn over the next year : A bank borrows money at the 5 year CD rate found in the paper with daily compounding. It loans money at the 15 year mortgage rate in the paper which is compounded monthly. If the bank borrows $10,000,000 from depositors and loans the $10,000,000 out ..
Determine the dimensions : Determine the dimensions, in both the FLT system and MLT system, for (a) The product of force times volume,
Couple plans on refinancing their existing mortgage : A couple plans on refinancing their existing mortgage. They currently owe $150,000 (which represents 70% of the value of the house) with 15 years left on the loan and monthly payments of $1300. A new loan will be financed at the 15 year fixed rate fo..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Golbal remitence case-financial account components

Where are remittances across borders included within the balance of payments? Are they current or financial account components? Under what conditions are remittances significant contributors to the economy and overall balance of payments? What role d..

  What would regret theory suggest as global asset allocation

Assume that there is NO exchange rate risk. You are managing an equity MPF in Hong Kong and wonder about your global asset allocation. You believe that foreign markets will outperform HK, but nothing is sure. You do a mean variance optimization and f..

  Eplain what are the lifetime fees and investment capital

You can assume the fund is fully invested by the beginning of year 6, and then realizes 20 percent of its investment capital in each of the following ?ve years. What are the lifetime fees and investment capital for this fund? (Make assumptions for..

  Sales increase-having to raise funds externally

Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.4 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

  What would the annual yield to maturity be on the bond

Sweet Fruit Inc has a $1000 par value bond that is currently selling for $1280. It has an annual coupon rate of 9.90 percent paid semi annually and has ten years remaining until maturity. What would the annual yield to maturity be on the bond if you ..

  How much return will his investment earn

Mr. Nailor invests $6,000 in a money market account at his local bank. He receives annual interest of 8% for 7 years. How much return will his investment earn during this time period? (Compound monthly)

  Risk-free zero coupon bond with face value

Stock A is a non-dividend paying stock, and at time 0 (that is t=0) it has a spot price of $24. At the same time, a risk-free zero coupon bond with face value 1,000 and maturity 3 year has a price of 789.

  What is the equivalent annual cost of this machine

Tool Makers, Inc. uses tool and die machines to produce equipment for other firms. The initial cost of one customized tool and die machine is $850,000. This machine costs $10,000 a year to operate. Each machine has a life of 3 years before it is repl..

  What is difference in sharpe ratio of an optimal portfolio

Stock A has an expected rate of return of 12% and a standard deviation of returns of 40%. Stock B has an expected rate of return of 18% and variance of returns of 0.36. The correlation coefficient between the returns of Stock A and Stock B is 0.25.

  As the value of the gini coefficient approaches one

As the value of the Gini coefficient approaches one, The Gini coefficient is measured by

  What is the financial leverage effect and what causes it

What is the financial leverage effect and what causes it?  What are the potential benefits and negative consequences of high financial leverage?

  What was the companys depreciation and amortization expense

The company has $6,600 interest expense, and the corporate tax rate is 35 percent. What was the company's depreciation and amortization expense?

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