Make equal deposits every month

Assignment Help Financial Management
Reference no: EM13928068

You plan to buy the house of your dreams in 5 years. You have estimated that the price of the house will be $119,644 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 3.99 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? Round the answer to two decimal places.

Reference no: EM13928068

Questions Cloud

How servant leadership can help address your chosen issues : Discuss how servant leadership can help address your chosen issues or challenges. Discuss at least one other popular contemporary model of leadership (e.g., situational leadership, competency-based leadership, spiritual leadership, or visionary le..
Compute gain or loss in the futures market after transaction : On August 2, a securities dealer, Ms. Cindy Zaicko, responsible for a $10 million bond portfolio is concerned that interest rates are expected to be highly volatile over the next 3 months. The fund manager decides to use Treasury bond futures to hedg..
Perform a literature search on training program : Assigment: Perform a literature search on effective workplace training programs (area is perioperative nursing/ nursing / hospital / operating room) and submit 15 annotated bibliographies of literature reviewed on effective workplace training
Compute the firms actual interest cost in dollars : In mid-December, a bank Treasurer projects that loan demand will require a $10 million borrowing on March 15. The contractual loan rate is 125 basis points over LIBOR. Compute the firm’s actual interest cost in dollars. Compute gain or loss in the fu..
Make equal deposits every month : You plan to buy the house of your dreams in 5 years. You have estimated that the price of the house will be $119,644 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 3.9..
What is the receivables turnover-annual credit sales : Evil Pop, Inc., has an average collection period of 29 days. Its average daily investment in receivables is $69,300. Assume 365 days per year. What is the receivables turnover? What are annual credit sales?
Annual return mean and standard deviation : Tyler Trucks stock has an annual return mean and standard deviation of 16 percent and 49 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 12.6 percent and 49 percent, respectively. Your port..
Under-investment problems refers to the problem : Under-investment problems refers to the problem that equity holders prefer not to invest in positive-NPV projects in highly levered firms because
What is the effective cost of borrowing in this case : Your firm has an average collection period of 27 days. Current practice is to factor all receivables immediately at a discount of 1.7 percent. What is the effective cost of borrowing in this case?

Reviews

Write a Review

Financial Management Questions & Answers

  How do exchange rates impact online purchases

Research the challenges associated with payments across international borders and prepare a brief presentation (Powerpoint) or paper (Word doc)of your findings. Do most e-commerce companies conduct business internationally? How do exchange rates impa..

  What is its unlevered beta

Bailey and Sons has a levered beta of 1.4, its capital structure consists of 50% debt and the rest is in equity, and its tax rate is 40%. What would Bailey's beta be if it used no debt, i.e., what is its unlevered beta?

  Assets-interest rate-response to change in capital structure

Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating costs to be $265,000, assets (which is equal to its total invested capital) to be $200,000, and its tax rate to be 35%. Assuming t..

  What is the break-even salvage value in dollars

Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 5,125,000 Australian dollars (A$) in the first year and 5,242,000 Australian dollars in the second. What is the break-even salva..

  After successfully completing your corporate finance class

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Schenkel has 385,000 shares outsta..

  What are the nominal and effective costs of trade credit

Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500 and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of t..

  Firms stock price fails to meet shareholders expectations

What are some actions an entrenched management might take that would harm shareholders? How is it possible for an employee stock option to be valuable even if the firm’s stock price fails to meet shareholders’ expectations?

  Foreign exchange dealer-what is annualized rate of return

A foreign exchange dealer has $1 million for a short-term money market investment. That is, he wants minimal risk in his investment, but he still wants to maximize the available return. Given the following market rates in the U.S. and London, what wo..

  Identify appropriate industry specific ratios

Discuss the disadvantages of ratio analysis. You must use questions 1 to 3 and examples from your workplace to substantiate your discussion

  Payback on nominal dollars within three years

Should the following project be accepted if the company requires both a payback on discounted cash flows within three years. payback on nominal dollars within three years

  Estimated that the annual sales of energy saving device

It is estimated that the annual sales of an energy saving device will be 25,000 the first year and increase by 10,000 per year until 55,000 units are sold during the fourth year. Proposal A is to purchase manufacturing equipment costing $125,000 with..

  Legal restrictions-capital across national boundaries

Although the world economy is much more integrated today than was the case 10 or 20 years ago, a variety of barriers still hamper free movements of people, goods, services, and capital across national boundaries. Legal restrictions. Excessive transpo..

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