About the present value

Assignment Help Financial Management
Reference no: EM13880984

Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)

Reference no: EM13880984

Questions Cloud

Is this degree of accuracy realistic : Estimate a linear demand equation that best fits the data using a regression program. Comment on the accuracy of your equation. Is this degree of accuracy realistic?
What was the rate of return for owning serox : Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest..
Future value of an annuity : Jayadev Athreya has started on his first job. He plans to start saving for retirement early. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of..
Benefits and drawbacks of using broad notions of fairness : Evaluate the views of the Critical Legal Studies School of jurisprudence. What are the benefits and drawbacks of using broad notions of fairness in deciding cases
About the present value : Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target?
Write program for computing of shortest trajectories in abg : Write a program for computation of the shortest trajectories in ABG. Set X (a 2D table with or without obstacles), an element p for which the trajectories should be calculated.
Efficiency ratio and leverage ratio : Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days’ sales in inventory. Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
What is the present value of these payments : PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, ..
What would be the financial institutions net savings : An interest rate cap of 7% with a notational value of $18.9 million is available for a premium of 0.58%. The same notational value 3% floor is available for a premium of 0.64%. If current interest rates are at 8%, what would be the a financial instit..

Reviews

Write a Review

Financial Management Questions & Answers

  Market value of chief corporation on the date of declaration

On October 1, 2013, Chief Corporation declared and issued a 14% stock dividend. Before this date, Chief had 89,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a res..

  Yield to maturity is average promised yield over life bond

Financial statements of a large corporation prepared using US GAAP and IFRS may have some difference but the P/E ratio will be same under GAAP and IFRS. Financial Analysis of a company should be conducted within its global industry rather than other ..

  What is jakes weighted average cost of capital

Team B Jake's Sound Systems has 390,000 shares of common stock outstanding at a market price of $31 a share. Its beta is 0.8. Market expected return is 13% and risk-free rate is 6%. Jake's also has 7,700 bonds outstanding with a face value of $1,000 ..

  Considered to be genius at picking stocks-financial crisis

Warren Buffet, the head of Berkshire Hathaway, is considered to be a genius at picking stocks because during the financial crisis of 2007–2009:

  What is the average daily float

In a typical month, the Hampton Corporation receives 80 checks totaling $139000. These are delayed four days on average. What is the average daily float? Assume 30 days in a month.

  Invest in business facility improvement-pay interest expense

A firm can make any form of distribution to its shareholders using the free cash flow tht it generates. The underlying objective is to maximize shareholder wealth by increasing the firm's value. Invest in business facility improvement. Pay interest e..

  Capita consumption of bottled water

According to botttledwater.org, in 2012, the per capita consumption of bottled water in the USA was reported as 30.8 gallons. What is the probability that someone in the United States consumed more than 32 gallons of bottled water in 2012?

  Staffing-training-recruitment-retention

Select a health care organization (local or national, large or small, public or private) and perform a needs assessment/gap analysis.

  Surcharge what are the difference between heavy life

what are the difference between heavy life surcharge and long life surcharge ? details about legal aspect of carriage

  Present value of tax savings from depreciation on speakers

The speakers will have a 5-year life and a $15,000 salvage value. The company has a required return of 6% and a 30% tax rate. Assuming Ace used straight line depreciation, what is the present value of the tax savings from the depreciation on the spea..

  Assume that money that is not withdrawn remains in account

In five years, you plan on starting graduate school to earn your MBA. You know that graduate school can be expensive and you expect you will need $15,000 per year for tuition and other school expenses. Assume that money that is not withdrawn remains ..

  Amortization with equal payments

Amortization with Equal Payments- Prepare an amortization schedule for a five-year loan of $67,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much interest paid in the third year? How much total intere..

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