About the deposit scheme

Assignment Help Financial Management
Reference no: EM13883194

Suppose you deposit $8,000 in 3 years, $3,000 in 6 years, and $9,000 in 8 years. How much will you have in your account after 8 years if the account earns 3% compounded annually?

Reference no: EM13883194

Questions Cloud

What is his thirty-year holding period yield : A 30-year corporate bond sold to investors at par ($1000) with a 10 percent coupon rate is called sixteen years later at a 12 percent call premium. At the time of call, prevailing rates on comparable securities were 8 percent. If the bond's holder re..
Expected for the foreseeable future : Last year Star Inc paid a dividend of $1.50 on its common stock last year. You expect the dividend will increase at 15% each year over the next three years; but after that, a normal growth rate of 5% is expected for the foreseeable future. Calculate ..
Discounted payback period for cash flows if initial cost : An investment project has annual cash inflows of $3,800, $4,700, $5,900, and $5,100, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $8,600?
What is the annualized interest rate for this loan : Suppose you want to borrow $11,123.57 and will pay back $500 monthly for 2 years. What is the annualized interest rate for this loan?
About the deposit scheme : Suppose you deposit $8,000 in 3 years, $3,000 in 6 years, and $9,000 in 8 years. How much will you have in your account after 8 years if the account earns 3% compounded annually?
Pet store business-what is the beta of assets : Katy's Kitten Emporium (KKE) is a thriving pet store business. You would like to understand the market risk of the KKE and are looking to find its Beta of the Assets. KKE's Beta of Equity is 1.7, the beta of debt is 0.2, and the tax rate is 29%. If K..
Expected return on portfolio-equally invested in two assets : A stock has a beta of 1.15 and an expected return of 13 percent. A risk-free asset currently earns 2.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?
After the dividend is paid-farrah owns : Farrah owns 5,000 shares of stock in DAS, Inc. with a market value of $15,000.DAS declares a 20% stock dividend. After the dividend is paid, Farrah owns
Announces is quarterly dividend will increase : Dew Drop In, Inc. announces is quarterly dividend will increase from $3.80 to $4.00. After the announcement, the price of Dew Drop In, Inc.'s stock drops.

Reviews

Write a Review

Financial Management Questions & Answers

  Net present value npvproblem 11-1npvproject k costs 40000

net present value npvproblem 11-1npvproject k costs 40000 its expected cash inflows are 12000 per year for 6 years and

  What was your total real return on investment

You bought one of Great White Shark Repellant Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is..

  Currently operating at full capacity-current assets

Urban's which is currently operating at full capacity, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acqu..

  Initial capital equipment

A city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital equipment). The city engineer has collected the following financial information for the complex projec..

  What is the beta of your portfolio

What is the beta of your portfolio?

  New sausage system with an installed cost

Dog Up! Franks is looking at a new sausage system with an installed cost of $455,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $65,000. If the ta..

  Dividends are expected to grow-what is current share price

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent, and the company just paid a di..

  Depreciation for tax and stockholder reporting purposes

Last year, Stewart-Stern Inc. reported $11,250 of sales, $4,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds outstanding that carry a 6.5% interest rate, and its federal-plus-state income tax..

  For a typical investor with a wrap account

For a typical investor with a wrap account, how much attention do you think he or she receives from the designated money manager?

  What must the coupon rate be on bonds

Hollin Corporation has bonds on the market with 15.5 years to maturity, a YTM of 7.6 percent, and a current price of $1,063. The bonds make semiannual payments. What must the coupon rate be on these bonds?

  Assume that the interest received at the end of the year

You placed $6,397 in a savings account today that earns an annual interest rate of 7 percent compounded annually. How much will you have in the account at the end of 26 years? Assume that the interest received at the end of the year is reinvested to ..

  Inflation risk premiums

Because of the recession, the inflation rate expected for the coming year is only 3%. However, the inflation rate for yer 2 and thereafter is expected to be constant at some level above 3%. Assume that the real risk-free rate is r* = 2% for all matur..

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