What is the balance in his savings account

Assignment Help Finance Basics
Reference no: EM13296257

Mack Aroni, a bank robber, is worried about his retirement. He decides to start a savings account. Mack deposits annually his net share of the "loot," which consists of $75,000 per year, for 3 years beginning January 1, 2000. Mack is arrested on January 4, 2002, (after making his third deposit) and spends the rest of 2002 and most of 2003 in jail. He escapes in September of 2003. He resumes his savings plan with semiannual deposits of $30,000, the first one being made on January 1, 2004. Assume that the bank's interest rate was 9% compounded annually from January 1, 2000 through January 1, 2003, and 12 % annual rate compounded semiannually thereafter.

When Mack retires on January 1, 2007 (6 months after his last deposit), what is the balance in his savings account?

 

Reference no: EM13296257

Questions Cloud

Which plan will produce the higher value : Compute P0 (price of the stock today) under Plan A. Note D1 will be equal to D0 X (1+g), or $2.00 (1.06). Ke will be equal to 10 percent and g will be equal to 6 percent.
What is the cost of common from retained earnings : Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant). What is the cost of common from retained earnings based on the DCF approach?
Explain solutions of nh4cl andnh3 to produce a buffer : In what volume ratio should you mix 1.0M solutions of NH4Cl andNH3 to produce a buffer solution having pH = 9.80
What types of stock would you choose the stocks : You are very risk averse, so you want to minimize the riskiness of each $50,000 investment.
What is the balance in his savings account : When Mack retires on January 1, 2007 (6 months after his last deposit), what is the balance in his savings account?
What is its nominal annual rate of return : Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?
Calcium reacts with fluorine gas to produce calcium fluoride : Calcium reacts with fluorine gas to produce calcium fluoride. How many moles of Ca will react with 1.0 moles of F2
Discuss the positives and negatives of capitalizing leases : Discuss the positives and negatives of CAPITALIZING leases and the related leased assets.
What is the angular speed of the ferris wheel : A boy is on a Ferris wheel, which takes him in a vertical circle of radius 7.6 m once every 15.0 s. What is the angular speed of the Ferris wheel

Reviews

Write a Review

Finance Basics Questions & Answers

  Four significant business risks of the company

Access the latest Form 10-K for the company and read "Management's Discussion and Analysis" from Form 10-K. Describe four significant business risks of the company as described in "Management's Discussion and Analysis."

  Which of these projects is worth pursuing

Which of these projects is worth pursuing?

  Calculating value of common stock

The last dividend paid by Klein Company was $2. Klein's growth rate is expected to be a constant 5 percent for next three years, after which dividends are expected to grow at a rate of 10 percent forever

  Calculate the total variable costs

A firm is reviewing a project with labor cost of $9.90 per unit, raw materials cost of $22.63 a unit, and fixed costs of $8,000 a month.  Calculate the total variable costs of the project.

  Determine generally accepted accounting principles

Determine generally accepted accounting principles and who currently develops and issues GAAP explain the purpose of generally accepted accounting principles.

  What is the present value

An investment will pay you $24,000 in 9 years. The appropriate discount rate is 9 percent compounded daily.

  Describing elements of financial planning process

Write down two elements of financial planning process?( it is cash planning and profit planning) Why is cash planning as very important as profit planning?

  Explain the logic behind the establishment of gold standard

Why would a multinational be willing to issue a bond in a foreign country and what would be the motivation?  How can they attempt to minimize their risk is they do issue these bonds?

  What is the maximum initial cost the company

What is the maximum initial cost the company would be willing to pay for the project?

  What is an appropriate forward exchange rate

Your firm is a U.S.-based exporter of toys. You have sold an order to an Italian firm for €1,000,000 worth of toys. Payment from the Italian firm (in €) is due in 1 year.

  Describe how stock prices are determined in stock markets

Describe how stock prices are determined in stock markets and how derivatives can be used to hedge or speculate on stock prices. Examples should include put and call options and stock index futures.

  What trades must the investor make now in order to return

What trades must the investor make now in order to return to an equally-weighted portfolio?

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