How much should he set aside today for purchase

Assignment Help Financial Management

Reference no: EM13847233

Fred plans to purchase a car four years from now. The car will cost $57,325 at that time. Assume that fred can earn 8.56 percent compounded monthly on his money. How much should he set aside today for the purchase? Round the answer to two decimal places.

Reference no: EM13847233

Questions Cloud

Interpret the results in one page memo to management : Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the subscription price is $47/share, calculate the value of a right. Based ..

Who is proposing the legislation : Review new/pending 2014-2015 State or Local legislation for health care finance component to include: who is proposing the legislation and Whenwas it proposed/enacted

The efficient-market hypothesis : “If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin.” Explain why or why not this is true.

Estimate is based on forecasted net rent : A building is appraised at $1 million. This estimate is based on forecasted net rent of $100,000 per year discounted at a 10% cost of capital [PV = 100,000/ 0.1 = 1,000,000]. The rent is the net of repair and maintenance costs and taxes. How much wou..

How much should he set aside today for purchase : Fred plans to purchase a car four years from now. The car will cost $57,325 at that time. Assume that fred can earn 8.56 percent compounded monthly on his money. How much should he set aside today for the purchase?

Savings account today that earns an annual interest rate : You placed $3722 in a savings account today that earns an annual interest rate of 19.72 percent compounded semi annually. How much will you have in this account at the end of five years? Assume that all interest received at the end of the period is r..

What is value of the common stock-common stock valuation : (Common stock valuation) Gilliand Motor, Inc., paid a $4.39 dividend last year. If Gilliand’s return on equity is 19 percent, and its retention rate is 28 percent, what is the value of the common stock if the investors require a rate of return of 18 ..

Explain combination of ways to educate co-workers : What would be the best way or combination of ways to educate co-workers about the new business your (imaginary) company just acquired

How would you update journal entries with answered balances : How would you update the journal entries with the answered balances?

User Account

All Pages