How much will be value of your investment after five years

Assignment Help Accounting Basics
Reference no: EM132846281

Questions -

Q1. Mae expects to receive $1,000 at the end of each of the next three years. She will deposit these payments into an account which pays 10%, compounded semi-annually. How much will be the future value of these payments, that is, the value at the end of the third year?

Q2. Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will receive $1,000 every 3 months for 2 years. The first $1,000 payment will be made as soon as she buys the investment. If the required rate of return of Madison is 16%, what amount should she be willing to pay for this investment?

Q3. Assuming that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semi-annually. If you make consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will be your balance at the end of fifth year?

Q4. If Dua invests $5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, how much will be the value of your investment after 5 years?

Q5. How much money should you invest at 12% interest, compounding quarterly, in order to see your investment grow to $5,000 in the span of 27 months?

Reference no: EM132846281

Questions Cloud

How do geographically dispersed team collaborate effectively : Find at least three tools on the market that teams can use to collaborate on a geographically dispersed team. Please note the pros and cons of each tool.
Explain the differences in charismatic and transformational : Explain the differences in charismatic and transformational leadership and how both leadership styles impact organizational effectiveness.
Was manufacturing overhead under- or overapplied : For 2021, the estimated and actual labour-hours were 216,000 and 185,000 respectively, Was manufacturing overhead under- or overapplied
What is a project and what are project main attributes : Discuss the importance of top management commitment and the development of standards for successful project management. Provide examples
How much will be value of your investment after five years : If Dua invests $5,000 in a mutual fund extending a total annual return of 8%, how much will be the value of your investment after 5 years
What traditional and modern maps that are very valuable : What traditional and modern MAPs that are very valuable but yet being underutilized by SMEs? Discuss constraints of SMEs that contribute to the underutilization
Prepare the journal entry for issuance of the bonds on june : On June 1, 2018, Eiffel decided to retire 20% of the bonds. Prepare the journal entry for the issuance of the bonds on June 1, 2016
Should the moss hire an additional employee : As Miranda Hobson, prepare a letter to the Moss advising them on their laundry needs. What is your recommendation and why?
What is the amount of outstanding checks on July : Check for purchase of supplies was drawn for P300,000 but was recorded as P200,000. What is the amount of outstanding checks on July

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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