Amount to be invested today

Assignment Help Financial Management

Reference no: EM13976560

Roy Gross is considering an investment that pays 6.10 percent, compounded annually. How much will he have to invest today so that the investment will be worth $28,000 in six years? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Amount to be invested today?

Reference no: EM13976560

Questions Cloud

What was the net income : Computer World Inc. paid out $46 million in total common dividends and reported $365.8 million of retained earnings at year-end. The prior year's retained earnings were $256.1 million. What was the net income?

Combined federal plus state tax bracket : An investor is in a 35% combined federal plus state tax bracket. If corporate bonds offer 9.25% yields, what must municipals offer for the investor to prefer them to corporate bonds?

How much in dividends were paid to shareholders : In its most recent financial statements, Newhouse Inc. reported $25 million of net income and $300 million of retained earnings. The previous retained earnings were $285 million. How much in dividends were paid to shareholders during the year? Assume..

A municipal bond carries a coupon rate : A municipal bond carries a coupon rate of 5.75% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 40% tax bracket?

Amount to be invested today : Roy Gross is considering an investment that pays 6.10 percent, compounded annually. How much will he have to invest today so that the investment will be worth $28,000 in six years?

Her investments have an average annual return : Stacey would like to have $1 million available to her at retirement. Her investments have an average annual return of 11%. If she makes contributions of $300 per month, will she reach her goal when she retires in 30 years?

What was its charge for depreciation and amortization : Pearson Brothers recently reported an EBITDA of $13.5 million and net income of $3.9 million. It had $2.0 million of interest expense, and its corporate tax rate was 35%. What was its charge for depreciation and amortization?

Planning to invest in mutual fund : Chuck Tomkovick is planning to invest $22,000 today in a mutual fund that will provide a return of 11 percent each year. What will be the value of the investment in 10 years?

About the certificate of deposit : Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduates from college in five years. His bank will ..

User Account

All Pages