User Account

All Pages

How should grandpa compute the required investment if the

Assignment Help Finance Basics
Reference no: EM13567743

A grandfather wishes to set up a fund today that will allow his grandson to withdraw $5,000 from the fund at the end of each year for four years to pay for college expenses. The first withdrawal is to occur one year from today. How should grandpa compute the required investment if the fund is to earn 6% interest compounded annually and the fund is to be exhausted by the grandson"s last withdrawal?

  1. $5,000 multiplied by the factor for the present value of 1 where n = 4, i = 6%.
  2. $5,000 divided by the factor for the present value of 1 where n = 4, i = 6%.
  3. $5,000 multiplied by the factor for the present value of an annuity of 1 where n = 4, i = 6%.
  4. $5,000 divided by the factor for the present value of 1 where n = 4, i = 6%.

Reference no: EM13567743

Questions Cloud

How does the net present value of the following net cash : how does the net present value of the following net cash flows change with discount rate? what is the internal rate of
Consider the following data fixed costs 10000000 variable : consider the following data fixed costs 10000000. variable cost per inpatient day 400. what revenue per inpatient day
Nestle company makes rubber cement data for nestles mixing : nike company produces an artificial cherry flavoring that passes through two production processes. nike uses the
Assume the following cost and revenue data for general : assume the following cost and revenue data for general hospital fixed costs 15000000. variable cost per inpatient day
How should grandpa compute the required investment if the : a grandfather wishes to set up a fund today that will allow his grandson to withdraw 5000 from the fund at the end of
Variable cost per visit 10 annual direct fixed costs50000 : super clinics offers one service that has the following annual cost and volume estimates variable cost per visit 10
Larry was given a 1500 tuition scholarship to attend : federal income tax 1 scholarships. for each of the following indicate the amount that must be included in the taxpayers
Should the fast food industry be regulated in a similar : should the fast food industry be regulated in a similar manner to the tobacco industry? explain the factors behind your
There were no changes in the 200000 shares of common stock : peter wong corporation had net income reported for 2014 of 880000. during 2014 dividends of 120000 were declared on

Reviews

Write a Review

Finance Basics Questions & Answers

  Global common denominator for valuing employees

Is there global common denominator for valuing employees, particularly related to compensation?

  Finding the transfer price in different situationsharpoon

finding the transfer price in different situations.harpoon inc. is a u.s. multinational corporation that ships small

  You are considering purchasing a new home you will need to

nbsp1. an annuity pays 10 per year for 50 years. what is the future value fv of this annuity at the end of that 50

  What is the effective annual rate

Allis Bank is offering you a credit card with an APR of 14.7 percent. The bank compounds interest monthly. What is the effective annual rate?

  What is the difference between operating and financial

1. what is investment banking? how would an investment banker assist an organization in going public? as a chief

  Prepare for her financial needs after her retirement

Prepare for her financial needs after her retirement?

  For the three most recent years calculate the du pont

for the three most recent years calculate the du pont identity for your chosen company. how has roe changed over this

  The individual project will consist of you picking a

the individual project will consist of you picking a country of your choice. the project will be due the last week of

  Describe identification of audit errors made by em

Describe Identification of Audit Errors made by EM and comparison of audit in compliance and Internal controls were reviewed in early 20x1 and EM determined that lack of segregation of duties existed in many areas of the company

  What would your equal monthly payments be

The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?

  Estimate the firms current stock price to be

which is also expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year. If its next dividend is due in one year, what do you estimate the firms current stock price to be?

  Wat does the auditors reference to generally accepted

what does the auditors reference to generally accepted accounting principles imply for our analysis of financial

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd