How much do you need to invest into an account today

Assignment Help Financial Management
Reference no: EM13925252

How much do you need to invest into an account today with 7% monthly compounded interest in order to have $500,000 fifteen years from now?

You are the owner of the New Orleans Saints. Let's say you take out a loan for $250 million to build new luxury boxes in your stadium. The interest rate on the loan is 7.5%, compounded yearly. It is a 15-year term for paying back the loan. What would be your yearly payment? How much is paid in total?

Reference no: EM13925252

Questions Cloud

Callable bond outstanding on market-what is yield to call : Fooling Company has a 12.2 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $25. What is the yield to call (YTC) for this bond if the current price is 110 percent ..
Describe how a monomer is the basic unit of all macromolecul : Describe how a monomer is the basic unit of all macromolecules.
What would happen if in a gene encoding polypeptide : What would happen if in a gene encoding polypeptide of 50 aminoacids 25th codon (UAU) is mutated to UAA ?Explain.
Preceding hypothesis test using the critical value approach : a. Formulate hypotheses that can be used to determine whether the mean price in New York City differs from $5600. b. A sample of 25 New York City contacts provided the prices shown in the attached file named diamonds. What is the p-value? c. at a = ...
How much do you need to invest into an account today : How much do you need to invest into an account today with 7% monthly compounded interest in order to have $500,000 fifteen years from now? You are the owner of the New Orleans Saints. Let's say you take out a loan for $250 million to build new luxury..
Create a handbook explaining various types of biological : As a safety professional, you have been asked to create a handbook explaining the various types of biological agents employees may have contact with in the workplace. In addition, you have been asked to include information regarding the basic exposur..
Find the instantaneous voltage at a time of 2.0 ms : From this expression, determine the peak voltage, the average voltage, and the angular frequency is rad/s. Find the instantaneous voltage at a time of 2.0 ms. (Reminder: the angles are in radians in this equation).
Time continuously compound the interest : Assume you invest $25,000 into an account with an 11% APR. Interest is compounded monthly. How much will you have in 25 years? How much more is this amount than if you compounded interest yearly? But this time continuously compound the interest?
Bio section : How can an individual whose parents did not have the "fish odor syndrome" trait inherit that trait?a) Under the circumstances outlined above, the "fish odor syndrome" cannot be inherited.b) If each parent were a silent carrier of the "fish odor syndr..

Reviews

Write a Review

Financial Management Questions & Answers

  What would your portfolios new beta

Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.85. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and to u..

  Estimate the first-year net operating cash flow

Eisenhower Communications is trying to estimate the first-year net operating cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: What is the project's operating cash flow for the f..

  Simple interest on its accounts compounded annually

First Simple Bank pays 8.3 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 13..

  Are they realistic

Briefly describe the Modigliani and Miller Proposition I and discuss the important conditions that are required to prove it to be true. Are they realistic?

  What would the annual yield to maturity be on bond

A few years ago, Spider Web, Inc. issued bonds with a 12.03 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $1,079, and will mature in 20 years. What would the annual yield to maturity be on the..

  What is the over and under absorbed overhead

The Alphonse Company allocates overhead costs by machine hours. At the beginning of the year the company expects fixed overhead costs to be $60,000 and variable overhead costs to be $80,000. The expected machine hours are 6,000 and the expected direc..

  Effective annual return friendlys earns on lending business

Friendly’s Quick Loans, Inc., offers you $6.50 today but you must repay $8.35 when you get your paycheck in one week (or else). What is the effective annual return Friendly’s earns on this lending business? If you were brave enough to ask, what APR w..

  What is the difference in the current prices of these bonds

You are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.5 percent. Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds?

  Compute the total amount he must pay immediately

Clay Harden barrowed $22,000 from a bank at an interest rate of 7% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 19th payment, Clay desires to pay the remainder of the loan in a s..

  Annual increase in the value of certificate

Suppose that in 2010, a $5 silver certificate form 1898 sold for 12,200. For this to have been true, what would the annual increase in the value of the certificate have been?

  Fill in the blank with the terms high low or zero duration

In each of the following financial situations, fill in the blank with the terms high duration, low duration, or zero duration, as appropriate. a. If you were considering buying a bond and you expected interest rates to increase, you would prefer a bo..

  Firm has balance sheet accounts and common stock

A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding. If the firm had a par value of $1, the stock originally sold ..

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