Compounded quarterly to accumulate amount

Assignment Help Financial Management
Reference no: EM13847239

Fred plans to go for vacation to India in ten years from now. He estimates that he will need $20984 for the trip. How much does he need to place in a savings account today that earns 6.24 percent per year compounded quarterly to accumulate this amount. Round the answer to two decimal places.

Reference no: EM13847239

Questions Cloud

Annual investment and gets the same rate of return in future : A perceptive engineer started saving for her retirement 15 years ago by diligently saving $18,000 each year through the present time. She invested in a stock fund that averaged a 12% rate of return over that period. If she makes the same annual inves..
Case analysis:degree appraisals case study : Case Analysis: 360 Degree Appraisals Case Study
A firms dividends payable account increased : A firm's dividends payable account increased $10,000 during the year. The firm also declared $35,000 of dividends. What is the complete disclosure in the direct method SCF for these events?
Define the following pointer and array : Define the following Pointer and Array. Answer the following question and provide an example: What is the difference between a one-dimensional and a two-dimensional array
Compounded quarterly to accumulate amount : Fred plans to go for vacation to India in ten years from now. He estimates that he will need $20984 for the trip. How much does he need to place in a savings account today that earns 6.24 percent per year compounded quarterly to accumulate this amoun..
Case analysis:degree appraisals case study : Case Analysis: 360 Degree Appraisals Case Study
Interpret the results in one page memo to management : Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the subscription price is $47/share, calculate the value of a right. Based ..
Who is proposing the legislation : Review new/pending 2014-2015 State or Local legislation for health care finance component to include: who is proposing the legislation and Whenwas it proposed/enacted
The efficient-market hypothesis : “If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin.” Explain why or why not this is true.

Reviews

Write a Review

Financial Management Questions & Answers

  What was the total return on this stock

Corning (a glass and ceramics maker) has a stock price of $20.30 on November 1. Suppose it pays a 25 cent dividend on November 30, and the stock price at the end of the day on November 30 is $21.75. What was the total return on this stock in November..

  Mccormick corporation issued note

McCormick Corporation issued a 4-year, $63,000, 5% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $49,605. The note requires annual interest payments each December 31. The market rate of interest for a n..

  Describe the concept of zero-base budgeting

Explain the concept of management control and how budgeting is used as part of it - Describe the concept of zero-base budgeting.

  What is fourniers current cost equity

Fournier Industries, a publicly traded waste disposal Company, is highly leveraged firm with 70% debt, 0% preferred stock, and 30% common equity financing. Currently the risk-free rate is about 4.5%, and the return on the S&P 500 (the market proxy) i..

  Future value-inheritance as a down payment

Future Value. You are hoping to buy a house in the future and recently recieved an inheritance of $22,000. You intend to use your inheritance as a down payment on your house. If you put your inheritance in an account that earns 7 percent interest com..

  What is the exercise value of the call option

A call option on the stock of Bedrock Boulders has a market price of $6. The stock sells for $29 a share, and the option has a strike price of $25 a share. What is the exercise value of the call option?

  About the callable bonds

Shafer Corporation issued callable bonds. The bonds are most likely to be called if __________

  Chapter 7 what overall net income would be produced if the

what overall net income would be produced if the admission rate of the capitated group were reduced from the commercial

  Considering a project with an initial outlay

East Coast Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $52,000 a year at the end of each year for the next 16 years. T..

  What is the estimated stocks current price

Company currently pays a dividend of $1.25 per share. It is estimated that the company's dividend will grow at a rate of 25% per year for the next 2years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.3, the risk-free ..

  Repaid in equal monthly installments

You are planning to borrow $100,000 for a major purchase, to be repaid in equal monthly installments over the next ten years. If interest rates are 13% per annum (compounded monthly), how much should each instalment be, if paid at the end of the mont..

  Movements in cross-exchange rates

Movements in Cross-Exchange Rates. Last year a dollar was equal to 7 Swedish kronor, and a Polish zloty was equal to $.40. Today, the dollar is equal to 8 Swedish kronor, and a Polish zloty is equal to $.44. By what percentage did the cross-exchange ..

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