Safety net for recessionary periods

Assignment Help Business Management
Reference no: EM131083646

Dell is considering a plan to save $2,500 a month for the next five years to build a safety net for recessionary periods. The money will be set aside in a savings account that pays 4.24 percent annual rate, with interest compounded monthly. Dell plans to deposit the first $2,500 today.

How much would the safety net accumulate in five years?

If the company wants to deposit an equivalent lump sum today, how much would it have to deposit?

Reference no: EM131083646

Questions Cloud

Example of retirement planning : Here is an example of retirement planning (using today's dollars - no inflation), Provide your own or hypothetical example and see what you get. Respond to one other Income $100,000/year, save $10,000/year and invest at 3% to retire in 30 years.
Independent wide sense stationary processes with expected : X(t) and Y(t) are independent wide sense stationary processes with expected values µX and µY and autocorrelation functions RX (τ ) and RY (τ )respectively. Let W(t) = X(t)Y(t).
Quote for a new harley davidson : Suppose you get a quote for a new Harley Davidson "Fat Bob" in the US for $36,000. You call in UK and get a quote for 20,000 Sterling Pounds. If the quotes in the US for the Sterling Pound are: $1.5000-10, 10-20, 40-30, 25-15. Today, where should ..
Write about a time when you banded together with others : Write about a time when you banded together with others to accomplish a task in the face of opposition, disbelief, or lack of faith in your collective abilitiy. As you worked, how did you encourage each other? What ideas of emotions fueld your e..
Safety net for recessionary periods : Dell is considering a plan to save $2,500 a month for the next five years to build a safety net for recessionary periods. The money will be set aside in a savings account that pays 4.24 percent annual rate, with interest compounded monthly. Dell p..
Consumption-savings problem in a two-period model : Consider the consumption-savings problem in a two-period model without government. Suppose the lifetime utility function is given by U(c,c')=In(c)+bIn(c'), where 0
Find a map that represents the kingdom during roman empire : Find a map that represents the kingdom during Roman Empire. Research how culture and national identity are linked together through geography or location.
Economy in long-run macroeconomic equilibrium : Draw a correctly labeled aggregate demand and aggregate supply graph illustrating an economy in long-run macroeconomic equilibrium.
Question regarding the implicit borrowing rate : A store will give you a 4.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer pa..

Reviews

Write a Review

 

Business Management Questions & Answers

  Evaluating communication strategiesyou are working as a

evaluating communication strategiesyou are working as a human services worker at a local united way agency where the

  Products-chocolate bars or bottles of expensive

Choose one of these products-chocolate bars or bottles of expensive perfume-and describe how marketers can apply their knowledge of the J.N.D. to packaging, pricing, and promotional claims during periods of (a) rising ingredient and materials c..

  Explain average revenue and marginal revenue

Explain How can you tell whether the firm is operating in a market that is purely competitive and What relationship exists between average revenue and marginal revenue?

  Techno corporation is currently manufacturing an item

Techno Corporation is currently manufacturing an item at variable costs of $ 5 per unit. Annual fixed costs of manufacturing this item are $ 140,000. The current selling price of the item is $ 10 per unit, and the annual sales volume is 30,000 uni..

  Leader of compensation committee

If you were the leader of your compensation committee, how would you ensure pay equity exists between your female and male associates?

  Explain the ethical issues faced by the organization

Explain the ethical issues faced by the organization

  What can one do to improve their level of critical

what can one do to improve their level of critical thinking?what can one do to improve their level of critical

  Why do businesspeople keep making the same mistakeexplain

why do businesspeople keep making the same mistake?explain what happened to nortel is similar to what happened to

  Explain there are three important properties

Explain there are three important properties which are of central importance and Describe all three properties and explain why they are so important for marketing

  How much time would it take to make given unit

Based on a, how much time would it take for next 190 units, assuming no loss of learning. How much time would it take to make 1,000th unit.

  Besides sales as well as expenses there are a variety

Besides sales as well as expenses there are a variety of control measures that management uses

  Library research assignment

Library Research Assignment

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