How long will quang money last

Assignment Help Finance Basics
Reference no: EM13289378

Quang deposits $20,000 in a savings account with a discount rate of 4.8% convertible quarterly. He leaves his money in this account to accumulate for twelve years, then moves it to a fund which is accumulating at 5.4% per annum convertible continuously. If, starting at time 12 when he invests in the new fund, money is withdrawn levelly and continuously at a rate of $8,000 per annum, how long will Quang's money last?

The answer is : 17.10632 yrs, including the 12 years prior to any withdrawls.

 

Reference no: EM13289378

Questions Cloud

Find the balance on the loan immediately : Mr. Beltram's payments increase by 10% each year. Find the balance on the loan immediately following his fiftieth payment.
Determine the expected frequency of the second harmonic : For one of the measurement you will be using a hanging mass of M=150 grams. Determine the expected frequency f2 of the second harmonic standing wave
Purpose of compiling a teacher work sample portfolio : What is the purpose of compiling a Teacher Work Sample Portfolio? What range of strategies should a Teacher Work Sample show evidence of and support? How does the Teacher Work Sample assess how a Level II pre-professional field experience candidate h..
Find the amount of interest in her 133rd payment : Ellen has a thirty year mortgage with level payments. The amount of principal in her 82nd payment is $259.34, and the amount of principal in her 56th payment is $230.19. Find the amount of interest in her 133rd payment.
How long will quang money last : If, starting at time 12 when he invests in the new fund, money is withdrawn levelly and continuously at a rate of $8,000 per annum, how long will Quang's money last?
Determine the height of the tree : a park ranger wanted to measure the height of a tall tree. The ranger stood 9.50 m from the base of the tree, What is the height of the tree
Oscilloscope screen capture-horizontal grid : The figure below shows an oscilloscope screen capture of a periodic signal. the oscilloscope settings are: time scale = 5 µs/division and voltage scale = 100 mV/division. What are the frequency and the peak voltage level for the signal shown? Ground..
How sensitive is ocf to an increase of one unit : straight line depreciation to zero over the 3 year life; zero salvage value; price =$34.99; variable costs=$23.16; fixed costs=$245,000; quantity sold=94,500 units; tax rate=35%. How sensitive is OCF to an increase of one unit in the quantity sold..
Design a voltage divider : Design a voltage divider that produces 6.3V from a 9V source using two resistor with one of the resistors having a value of 10K.  Show how you get your answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate profit margin

Following is the financial information for Dell Corporation and calculate profit margin.

  Find the risky stock

Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent,

  Calculate the translation exposure loss

Egyptian Ingot is the Egyptian subsidiary of TransMediterranean Aluminum, a British multinational that fashions automobile engine blocks from aluminum.

  Find myr position should be hedged or not

As you are the finance manager of Aussie Biscuits you are worried that the recent significant appreciation of the Australian dollar may continue in the near future and you are considering whether this MYR position should be hedged or not.

  Estimation of break-even point

Ensco Lighting Corporation has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 each unit.

  What are the rates with continuous compounding

The 6-month, 12-month, 18-month, and 24-month zero rates are 3.00%, 3.50%, 4.00%, and 4.50% with semi-annual compounding.

  Determine risky investment

Assume you are aware of the following investment opportunity: You could open a coffee shop around the corner from your home for $25,000. IF business is strong, you could net $15,000 in after tax cash flows each year over next 5-years.

  What is the nal of the lease

The machine has an estimated residual value of $250,000 at the end of the 4th year.

  What is the maximum that should be paid to replace

A used machine costs$100,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%

  Determine earnings per share for 2009 and 2010

Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 24 percent - Evaluate earnings per share for 2009 and 2010

  What is quigley wacc

The firm will not be issuing any new common stock. What is Quigley's WACC?

  Which you would use option pricing

Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

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