How large must the deposit be

Assignment Help Financial Management
Reference no: EM131578340

Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments.

How large must the deposit be? Round your answer to the nearest cent.

How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.

Reference no: EM131578340

Questions Cloud

Select a particular medication or clinical problem : Select a particular medication or clinical problem. Describe how the CPOE and/or CDSS technologies support care decisions in this area.
Specific technological tool : Discuss the implementation of a technological tool
The rationale behind your design development : The rationale behind your design development.A description of how this CDSS will be implemented and adopted by fellow clinicians.
Discuss the topic of the paper and how you will approach it : Discuss the topic of the paper and how you will approach it. It is best to write this section after you have written the rest of the paper.
How large must the deposit be : Starting next year, you will need $5,000 annually for 4 years to complete your education. How large must the deposit be?
Explain what are components of group diversity : Explain What are components of group diversity? In a virtual meeting, how can you ensure a group is communicating effectively?
List elements that you think will be valuable in a database : Select a defined patient population and list elements that you think will be valuable in a database.
Discuss the principal of mathematical induction : Prove that the Weak Principal of Mathematical Induction implies the Strong Principal of Mathematical Induction.
Calculate the overhead rate based on traditional overhead : Surfs Up manufactures surfboards. Calculate the overhead rate based on traditional overhead allocation with direct labour hours as the base

Reviews

Write a Review

Financial Management Questions & Answers

  What would its price be relative to bond and why

Bond Z is $1,000 par value with 5.25% annual interest for 20 years. Its current market price is $595.61. Its current yield is 8.81% and its yield to maturity is 9.16%. It's comparable rate is 10%. If Bond Y has a 5.25% coupon and a maturity of 20 yea..

  What bid price per carton should you submit

Another utilization of cash flow analysis is setting the bid price on a project.what bid price per carton should you submit?

  Changes in firms credit and collection policies.

Describe the marginal costs and benefits associated with each of the following changes in a firm's credit and collection policies.

  Current liabilites-what is the value of recievables

Appex Corporation has current liabilites of 2million, a current ratio of 3.0, a quick ratio of 2.0, and cash ratio of .75. Given the informaion, answer the following about the firms liquidity: What is the value of inventory? What is the value of reci..

  Explain difference between an annuity and perpetuity

Discuss/explain the difference between an annuity and a perpetuity, and the steps involved in calculating the future value of multiple cash flows.

  Conduct sensitivity analysis to determine sensitivity of NPV

Use Excel formulas to do all the calculations, that is, do not calculate anything on a calculator and just input the answer in your file. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback. Conduct a sensitivity analy..

  Choose among three award options

Crissie just won the lottery , and she must choose among three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9.5 million, or to receive 30 end-of-year payments of $5.5 million. a. If s..

  Financial statements and entity-level controls

Auditors need to use a top-down approach to identify controls to test. This approach starts at the top of an organization (financial statements and entity-level controls) and helps to link the financial statements to significant accounts, relevant as..

  Five basic methods of payment for international trade

In 250 words, consider the five basic methods of payment for international trade. Describe the pros and cons of each. Please read full description.

  How much will that increase her annual savings

Angela analyzes her personal budget and decides that she can reduce her recreational spending by $50 per month. How much will that increase her annual savings? What will her annual savings be now?

  Depreciation expense and inventories

How many of the following items are found on the income statement, rather than the balance sheet? Depreciation expense, Inventories

  What is the return on assets and what is return on equity

Keller Cosmetics maintains an operating profit margin of 8.60% and a sales-to-assets ratio of 3.10. It has assets of $620,000 and equity of $420,000. Interest payments are $42,000 and the tax rate is 35%. What is the Return on assets? What is the ret..

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