Solution-How much money will you have at the end

How much money will you have at the end

Assignment Help Finance Basics

Reference no: EM132501048

Now that she is going to save 100 €/month, you decided to save those 100€ per month in a bank account that offers a 5% interest rate compounded monthly, till the day she retire (that is to say, in 20 years).

Please answer the following question: If Sara decide to deposits at the end of every month (so your first deposit will be in one month from today) in a bank account that offers a 5% interest rate compounded monthly, and the deposits will increase in a 0.2% month after month, and she keep on doing so for the next 20 years:

a) Draw the timeline (at least the first five periods) with its corresponding numeration of periods and cashflows in their corresponding points

b) How much money will you have at the end? Show the workout

c) What would it happen if the growth rate and the interest rate is the same?

Reference no: EM132501048

Questions Cloud

How to prevent ransomware and how to stop ransom attacks : Need a 700-word document on " Ransomware, malware, business security" with APA format including sources & bibliography. The content should include over topics.

Compute the companys unit product costs in accordance : Compute the company's unit product costs in accordance. Calculate the predetermined overhead rate based on units and direct labour.

What must be the company''s growth rate of dividend : The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. The beta of Sure Tool Company's stock is 1.25. Assume Sure's intrins

Write a report that outlines the investigation plan : Write a 500-1000 word report that outlines the investigation plan, procedures to secure the digital evidence, and data validation methods.

How much money will you have at the end : Draw the timeline (at least the first five periods) with its corresponding numeration of periods and cashflows in their corresponding points

Discuss an example of a restricted resource : Discuss An example of a restricted resource, whether in the production of a product or article, or service. An alternative for this to generate profits

Research transfer pricing problems : Assess the major potential problems that a multinational firm could encounter when using negotiated transfer pricing instead of market-based transfer

What rate of return does each bond offer over the 5-year : A 30-year maturity bond has a 5.6% coupon rate, paid annually. It sells today for $876.17. A 20-year maturity bond has 5.1% coupon rate, also paid annually.

How waste audits have helped companies save money : Give one example from industry of how waste audits have helped companies save money while becoming more environmentally friendly

User Account

All Pages

How much money will you have at the end

Reference no: EM132501048

Reference no: EM132501048

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT