### How much would have to invest now in one lump sum

Assignment Help Accounting Basics
##### Reference no: EM13258652

In preparing to start your own business in 6 years, you planto invest 10% of your salary each month in an account with a fixedrate of return of 5.3%. You currently make \$3000 per month andexpect your income to increase by \$500 per year.

A) If you start investing now, to what amount will youraccount grow in 6 years, assuming continuous stream.

B) how much would you have to invest now in one lump sum,instead of the continuous stream, in order to build to the same 6year future value

#### Questions Cloud

 Identify three external environment factors : Choose a product/service (e.g McDonald fastfood, HP computer...) and identify three external environment factors that might have the most important impact on the development of this product/service in three - five years. Explain your answer. Explain the equilibrium constant kc equals : The equilibrium constant Kc equals .0952 for the reaction at 227C CH4OH(g) CO(g)+ 2H2(g). wHAT us the value of KP at this temperature Compare the organizational structures of google and wal-mart : Compare the organizational structures of Google and Wal-Mart and explain what types of control processes might be found in each of the organizational structures. What is the annual value to the plant owner of a increase : what is the annual value to the plant owner of a 1% increase in the capacity factor of a 1,200-MWe nuclear power plant, in \$/year. For example, assume the plant capacity factor increased from 0.875 to 0.885. Disregard the minor effect of capacity .. How much would have to invest now in one lump sum : How much would you have to invest now in one lump sum, instead of the continuous stream, in order to build to the same 6year future value Describe how often project reviews should be held : Describe how often project reviews should be held with project sponsors by the project manager. List five important factors that should be in the project review, described in the text as "actionable information". What is the minimum expected annual return for stock : what is the minimum expected annual return for Stock 3 that will enable Sara to achieve her investment requirement? What is the speed of sound in the gas in the tube : A uniform narrow tube 1.80m long is open at both ends. It resonates at two successive harmonics of frequencies 279Hz, What is the speed of sound in the gas in the tube Calculate the amount of the unrealized loss : Calculate the amount of the unrealized loss shownon ZZ, Inc.'s 2007 income statement.

### Write a Review

#### 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.

#### Theory of interest - term structure of interest rates

Term Structure of Interest Rates

#### 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