Determine the accumulated value of fund y

Assignment Help Financial Management
Reference no: EM131913236

1500 is deposited into Fund X, which earns an annual effective rate of 7%. At the end of each year, the interest earned plus an additional 150 is withdrawn from the fund. At the end of the tenth year, the fund is depleted.

The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 8%. Determine the accumulated value of Fund Y at the end of year 10.

Reference no: EM131913236

Questions Cloud

What is the quarterly cost of capital for the building : The first quarterly cash flow is expected in 3 months from today. What is the expected quarterly cost of capital for the building?
Determine the payment to amortize the debt : The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 10 years.
Why should medal one accept the given special order : The Medal One Company manufactures medals for winners of athletic events. Why Should Medal One accept this special order? Show your calculations.
Monopoly on sales of a profitable product : What kinds of things would you do to protect it? Now assume that the market for your product suddenly becomes one of perfect competition.
Determine the accumulated value of fund y : The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 8%.
Learned from marketing research : If you think that a business is marketing to you, what information do you think that they learned from marketing research?
Balance sheet and the income statement : What balance sheet account provides the link between the balance sheet and the income statement? Briefly describe how this linkage works.
What rate of return did the original purchaser actually earn : A 15 year bond has a face value of $50000 and semi-annual coupons of $1250. find the purchase price if the buyer's annual rate of return is 0.054.
What is the future value of an annuity factor : If you deposit $9165 at the end of each of the next 8 years into an account paying 9 percent interest, what is the Future Value of an Annuity Factor?

Reviews

Write a Review

Financial Management Questions & Answers

  Weighted average cost of capital-what is the value per share

A company’s weighted average cost of capital is 10% per year and the market value of its debt is $54.2 million. what is the value per share?

  Calculate the profitability index-npv and irr

George would like Craig to analyze the financial viability of the new plant and calculate the profitability index, NPV, and IRR.

  Borrowing money from a bank versus issuing public bonds

A firm has a choice between borrowing money from a bank versus issuing public bonds for the same amount. Give an example of one item (a ratio or a number, or any other quantitative item but not something like a feeling or impression) that will be par..

  About the constant growth valuation

Boehm Incorporated is expected to pay a $1.30 per share dividend at the end of this year (i.e., D1 = $1.30). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the value per..

  Compute the EPS for both Plan

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 795,000 shares of stock outstanding. Compute the EPS for both Plan

  What is the dominant business for discovery communications

What is the dominant business for Discovery Communications, Inc. How much revenue does the dominant business of Discovery Communications, Inc generate?

  What is the interest rate implicit in this loan

A Navy petty officer needs cash and goes to a paycheck advance company for some money. He/she agrees to pay $550 in two weeks (when his/her paycheck arrives) in exchange for $500 today. What is the interest rate implicit in this loan?

  What nominal and effective annual rate of return

Assume that the City of New York sold an issue of $1,000 maturity value, tax exempt (muni), zero coupon bonds 5 years ago. The bonds had a 25-year maturity when they were issued, and the interest rate built into the issue was a nominal 8.40 percent, ..

  Required return-how much will you pay for the policy

Assume the required return on this investment is 6.3 percent. How much will you pay for the policy?

  Using the exchange rate of the date of dividend payment

Use the ASX website or annual report to determine the dividend paid for the year. If the share is franked, you will have to gross it up to account for franking credits. If the stock pays dividends in foreign currency, you will have to convert that ho..

  After-tax operating income is calculated as EBIT

Retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. After-tax operating income is calculated as EBI..

  How many employees can you hire in year one and in year five

Explain your primary strategy to differentiate yourself from your competition. How many employees can you hire in year 1 and in year 5. 11.

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