Approximately how long will it take john to reach his goal

Assignment Help Financial Management

Reference no: EM131868622

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. John Jamison wants to accumulate $77,709 for a down payment on a small business. He will invest $39,000 today in a bank account paying 9% interest compounded annually. Approximately how long will it take John to reach his goal?

2. The Jasmine Tea Company purchased merchandise from a supplier for $45,102. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $11,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?

3. Sam Robinson borrowed $20,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?

Reference no: EM131868622

Questions Cloud

Calculate the current equilibrium spot rate : Assume Ee£/€ = 0.91 (one year from now), the British interest rate i£ = 0.02 and the euro interest rate i€ = 0.01 to calculate the current equilibrium spot rate

Price-quantity combinations on the demand curve for good : The price of good Y is PY = $2. Fill in the table below which gives price/quantity combinations on the Demand Curve for Good X:

Provide a list of the issues presented in the given article : Provide a list of the issues presented in the article. General Theme: A brief statement about what you felt was the author's general theme of the article.

Iinternational development bank : Suppose an international development bank is deciding whether to use the head-count index or the poverty gap to measure the effects of a countrys poverty.

Approximately how long will it take john to reach his goal : John Jamison wants to accumulate $77,709 for a down payment on a small business. Approximately how long will it take John to reach his goal?

Determine what is needed to protect and monitor : Compile a list, and describe at least 10 of the most widely used antivirus software, malware removal, and Internet security applications.

What is the opportunity cost of going to college term : What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

What is the yearly interest rate being offered by the dealer : What is the yearly interest rate being offered by the dealer (to the customer) in %?

Describe how often you need to re-certify : Give a description of the certification or degree program. List the cost of the certification or degree (semester hour).

User Account

All Pages