How much money will be in account at the end of that time

Assignment Help Financial Management
Reference no: EM131339663

You have decided to place $442 in equal deposits every month at the beginning of the month into a savings account earning 3.40% per year,compounded monthly, for the next 6 years. the first deposit is made today. how much money will be in the account at the end of that time.

Reference no: EM131339663

Questions Cloud

Using the constant growth dividend model : The required return (using the constant growth dividend model) for a share of stock is equal to: Your opinion is that CSCO has an expected rate of return of 0.1375. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of retu..
What is its times-interest-earned ratio : Graser Trucking has $19 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 13%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?
Find the present value of these cash flows : You have accumulated some money for your retirement. you are going to withdraw $86,264 every year at the end of the year for the next 15 years. how much money have you accumulated for your retirement? your account pays you 3.17% per year compounded a..
What the dell decision teaches us about valuation : The ruling involving Michael Dell’s management buyout highlights why two reputable share-valuation experts could differ by 126%. The May 31 Delaware Court of Chancery Decision In Re: Appraisal of Dell, Inc. highlights many of the valuation issues fac..
How much money will be in account at the end of that time : You have decided to place $442 in equal deposits every month at the beginning of the month into a savings account earning 3.40% per year,compounded monthly, for the next 6 years. the first deposit is made today. how much money will be in the account ..
What is the real rate of return for large-cap stocks : Large-cap stocks had the nominal rates of return of 6.58 percent. The rate of inflation during the last year was 4.87 percent. What is the real rate of return for large-cap stocks?
Calculate the amount of interest and principal paid : You plan to purchase a $230,000 house using a 15-year mortgage obtained from Ing Direct.. The mortgage rate offered to you is 3.25%. You will make a down payment of 25% of the purchase price. Calculate your monthly payments on this mortgage. Calculat..
Unbiased expectations theory-calculate current rates : Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities.
What would be the new value of your bond portfolio : You own a bond portfolio worth $88,330.You estimate that your portfolio has an average yield-to-maturity of 5.1% and Macaulay Duration of 3.3 years. If interest rates went down one percentage point and your portfolio's yield-to-maturity changed by th..

Reviews

Write a Review

Financial Management Questions & Answers

  Borrowed some money at eight percent per annum

You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $ 139 (first payment made at t = 1), followed by five annual payments of $ 413 , followed by four annual payments of $ 715 . How much did you borrow..

  Prepare capital valuation of the freehold

Prepare a capital valuation of the freehold of the following office building. Albion House an office block constructed some 30 years ago on Ground and 3 upper floors and has a Net Internal Area (NIA) of 1,000 square metres, evenly arranged over all 4..

  What range of stock prices at maturity

Three call options on a stock have the same expiration date and strike prices of $20, $25, and $30. The market prices are $8, $4, and $1, respectively. Explain how a butterfly spread can be created. Construct a table showing the profit from the strat..

  What is the intrinsic value of this preferred stock

Federated Holdings recently issued $90 par-value preferred stock that pays a 7% dividend rate per year.- What is the intrinsic value of this preferred stock?

  Calculate the effective financing rate

Marcus, Inc., a U.S. company takes out a 1-year loan in Germany. The U.S. 1-year interest rate is 5%, and the German 1-year interest rate is 6%. The spot rate of the euro is $1.33 and the 1-year forward rate is $1.29. Calculate the effective financin..

  Find the future value of the annuities

Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities.

  Levered at debt to value ratio

Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the cost of equity for an all equity firm is 12%. What will be Alabaster's cost of equity?

  What is the firms weighted average cost of capital

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 40%. What is the firm's ..

  Their fund at the time of their retirement

When Steve and Roslyn retire together they wish to receive $40,000 additional income (in the equivalent of today’s dollars) at the beginning of each year. They assume inflation will be 4% and they expect to realize an after tax return of 8%. Based on..

  What is the addition to retained earnings

Lexington Brand has sales of 318,400, costs of 199,400, depreciation expense of 20,600, interest expense of 1,100, and a tax rate of 34 percent. The firm paid out 16,500 in dividends. What is the addition to retained earnings?

  Many of our time value of money problems

Many of our time value of money problems will be working with lump sums, annuities, or both (such as with bonds). What do these terms mean and how do we analyze each? What are some of the qualifications to be an annuity? Any examples?

  Were the same business drivers discussed

Present a brief side-by-side comparison of MacDonald’s MD&A of 2013 to that of 2012. Were the same business drivers discussed? Were they assigned the same importance by management? Discuss any variations you observed, and the possible reasons for man..

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