Compute the annual beginning of-the-year payment

Assignment Help Business Management
Reference no: EM132803260

John's son will start college in 9 years. John estimated a today's value of funds to finance college education of his son as $250,000. Assume that after-tax rate of return that John is able to earn from his investment is 9.44 percent compounded annually. He does not have this required amount now. Instead, he is going to invest equal amounts each year at the beginning of the year until his son starts college. Compute the annual beginning of-the-year payment that is necessary to fund the estimation of college costs. (Please use annual compounding, not simplifying average calculations). Round the answer to two decimal places.

Reference no: EM132803260

Questions Cloud

Concept of corporate governance : Which of the following best defines the concept of corporate governance?
Calculate the net income for overstated or understated : Minor repairs made on the building on December 30, totaling to P28,000, was debited to the Building account. Calculate the Net Income for overstated
How does operating leverage affect business risk : A firm has fixed operating costs of P100,000 and variable costs of P4 per unit. If it sells the product for P6 per unit, what is the break-even quantity?
Calculate the cost of preferred stock : Calculate the cost of preferred stock. Dillon Labs has asked its financial manager to measure the cost of each specific type of capital.
Compute the annual beginning of-the-year payment : John's son will start college in 9 years. John estimated a today's value of funds to finance college education of his son as $250,000.
Role in dow environmental-related actions : The chemical industry is not shy of M&As. Dow, BASF, and DuPont create their empire through M&As.
Individual budgeting for retirement assignment : When you would like to retire? How much money you will need in retirement? How long do you plan for the money to last?
Explain the basis behind workers compensation : Explain the basis behind workers' compensation. What was the historical background that generated this line of insurance
What is the holding period yield : What is the holding period yield (or HPY) on your ABC stock investment?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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