How much money can be withdrawn each year

Assignment Help Financial Management
Reference no: EM131354149

How much money can be withdrawn each year over a 10 year period from an account that $100,000 in it, if the account earns 6% interest copounded annually. Assume there is no money left in the account after the 10th withdrawal.

Reference no: EM131354149

Questions Cloud

Money market account-bond fund international stock fund : A person plans to invest a total of 160000 in a money market account, a bond fund an international stock fund and a domestic fund. she wants 60% of her investment to be conservative (money market and bonds). Assuming she gets annual returns of 2.5% o..
Basis of estimated production-an annual net income : A lathe machine can be purchased for $ 750,000. On the basis of estimated production, an annual net income (profit) of 194, 500 is foreseen for the next 15 years. After 15 years, this lathe will probably be worthless. What annual IRR is prospect?
Price of the bond will have an estimated price change : Given a bond with a duration of 7.65 and convexity of 125 that pays interest semi-annually and has a yield to maturity of 4%, if the market interest rate (YTM) increases from 4% to 7%, the price of the bond will have an estimated price change due to ..
Ura benefit from increasing or decreasing its use of debt : URA, Incorporated, has operating income of $5 million, total assets of $45 million, outstanding debt of $20 million, and annual interest expense of $3 million. What is URA’s indifference level of EBIT? Given its current situation, might URA benefit f..
How much money can be withdrawn each year : How much money can be withdrawn each year over a 10 year period from an account that $100,000 in it, if the account earns 6% interest copounded annually. Assume there is no money left in the account after the 10th withdrawal.
Revised expected return : A researcher has determined that a two-factor model is appropriate to determine the return on a stock. The factors are the percentage change in GNP and an interest rate. If the expected rate of return on the stock is 14 percent, what is the revised e..
Disadvantage of re-working the keyboards : The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,900, they could be sold for $18,800. Alternatively, the keyboards could be sold “as is” for $8,700. What..
Boulder furniture has bonds outstanding that mature : Boulder Furniture has bonds outstanding that mature in 15 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,075. What is the company's aftertax cost of debt if its tax ..
The market risk premium-what is the cost of equity : Southern Home Cookin' has a market price of $13 and a beta of 1.12. The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equity?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the lenders expected annual yield

A $150,000, 15-year, monthly payment mortgage loan carries an interest rate of 5.5%, plus three points. The points are financed. What is the lender’s expected annual yield if the loan is amortized over the full 15 years?

  Project has an initial fixed asset investment

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of $20,000, and an annual OCF of −$19,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  Economic order quantity-current inventory policy

Viking Manufacturing, Inc. currently begins each sales cycle with 12,500 vacuum cleaners in stock. This stock is depleted at the end of each sales cycle and then reordered. What is the total cost of current inventory policy? What is the restocking co..

  What is reward-to-volatility ratio for the equity fund

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. ..

  Give the clients understanding of the boca market

Imagine that you are a real estate agent in Florida and you are working with a retired couple from out of state. The couple is considering purchasing a retirement home in Boca Raton. Identify what might be considered to be the three most significant ..

  What conditions should the recapitalization be pursued

Meretreau Inc. is an industrial firm specializing in jet engines. It targeted its balance sheet fo0r which this unlevered firm has assets of $697, 445,000 and earnings of $21, 536,000 for which there are 9, 912, 378 shares outstanding. Under what con..

  Assume semi-annual compounding and coupon payments

You can buy or sell a 6% $1000 par U.S. Treasury Note that matures in exactly 4 years (meaning it pays (.06/2)*1000 coupon payments every 6 months starting 6 months from now through maturity, and repays principal on maturity), with a current yield to..

  Strategy of covered call writing to partially hedge

Evanston Insurance Inc. has purchased shares of Stock E at $50 per share. It will sell the stock in six months. It considers using a strategy of covered call writing to partially hedge its position in this stock. The exercise price is $53, the expira..

  Accounts would costs be recorded on financial statements

A job was started on May 15, completed on June 27, and delivered to the customer on July 6. In which accounts would the costs be recorded on the financial statements dated May 31, June 30 and July 31?

  Cash inflow and cash outflow analysis

The owner of a bicycle repair shop forecasts revenues of $228,000 a year. Variable costs will be $67,000, and rental costs for the shop are $47,000 a year. Depreciation on the repair tools will be $27,000. The tax rate is 30%. a. Calculate operating ..

  Determining financial and management reporting requirements

MHC601 Accounting and Finance for Managers Assessment. Apply Accounting decision-making concepts with your company to structure your Report: Discuss the important issues in determining financial and management reporting requirements. Assess ..

  How much would you have had 10 years later

Compare two stocks. - If you had purchased $500 in each stock, how much would you have had 10 years later?

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