Making deposits into fund continuously at rate

Assignment Help Financial Management
Reference no: EM13882162

Max starts making deposits into a fund continuously at a rate of (19-2t). He will be making deposits until time t=7. This fund credits a force of interest of 2.1%. Calculate the present value of this fund two ways: one method should use an Increasing term and the other method should use a Decreasing term.

Reference no: EM13882162

Questions Cloud

A companys preferred stock pays fixed dividend : A company’s preferred stock pays a fixed dividend of $1.4 per share forever. The market uses a discount rate of 7%. What is the price of this preferred stock? The risk free rate in the economy is 1.00% and the market risk premium is 5.00%. If an anal..
Define and discuss framing : For each of the two selected you will write 2-3 paragraphs analyzing the emotional issues in each one. Define and discuss framing. What strategy would you employ or suggest be used in each of your selected case study. What role could an apology..
Determine which strategies are the best to implement : The manager has a maximum of $50 per employee to spend on the permanent implementation of as many of the strategies. Determine which strategies are the best to implement.
What is the current price of kleins common stock : The last dividend paid by Klein Company was $2.00. Klein’s growth rate is expected to be a constant 4 percent for 2 years, after which dividends are expected to grow at a rate of 6 percent forever. Klein’s required rate of return on equity (ks) is 8 ..
Making deposits into fund continuously at rate : Max starts making deposits into a fund continuously at a rate of (19-2t). He will be making deposits until time t=7. This fund credits a force of interest of 2.1%. Calculate the present value of this fund two ways: one method should use an Increasing..
Find the estimators of ß1 and a1 . are they identical : Consider the following formulations of the two-variable PRF:Model I: Yi = β1 + β2 Xi + ui ,Model II: Yi = α1 + α2 ( Xi - X¯ ) + ui - Find the estimators of β1 and α1 . Are they identical? Are their variances identical?
Financial company that advertises on television : A financial company that advertises on television will pay you $61,000 now for annual payments of $9,400 that you are expected to receive for a legal settlement over the next 11 years. Assume you estimate the time value of money at 12 percent.
What will be the value of her retirement account : Carla Lopez deposits $9070 a year into her retirement account. If these funds have an average earning of 7 percent over the 15 years until her retirement, what will be the value of her retirement account?
Standard deviation-create your optimal complete portfolio : Stock A has a standard deviation equal to 20% and an expected return of 11%. Stock B has a standard deviation equal to 25% and an expected return of 14%. The correlation coefficient of the returns on Stock A and Stock B is 50%.  How much must you inv..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the dollar amount of dividends

A man purchased a stock one year ago for $25. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?

  Considering four mutually exclusive public-works projects

Tempe is considering four mutually exclusive public-works projects. Their costs and benefits are presented in the table below. Each project has a useful life of 50 years and the MARR is 12% per year. Which of the projects, if any, should be selected?..

  Calculate the two projects npvs

Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $220,000, a 3-year expected life, and after-tax cash flows (labor savings and depre..

  About their working capital management

Use the table below, summarized from CFO Magazine’s 2006 working capital survey to answer this question. Compare Genzyme’s CCC to that of Quest Diagnostics. What do the CCC for the two companies tell us about their working capital management?

  The type of ratio that indicates the firms ability

The type of ratio that indicates the firm’s ability to provide adequate returns in the form of dividends and share price appreciation is:

  Assuming its historical return on assets-currently stand

Assuming IBM’s historical “LT (Long-term Debt/Equity) is 100 percent, how does it currently stand? Generally speaking, is that good or bad? Assuming its historical return on assets is 10 percent, how does it currently stand? Generally speaking, is th..

  What is the current bond price-coupon rate

Great Wall Pizzeria issued 11-year bonds one year ago at a coupon rate of 6.8 percent. If the YTM on these bonds is 9 percent, what is the current bond price?

  Best estimate of the companys cost of equity

Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5 percent. The company’s most recent dividend was $1.40 per share, and dividends are expected to grow at an annual rate of 7 perc..

  What is your net dollar sales projection for this year

Dodge Ball Bearings had sales of 19,000 units at $65 per unit last year. The marketing manager projects a 15 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a competitor). Returned merchan..

  Balance sheet and income statement for start-up firm

Compose and complete the following balance sheet and income statement for this start-up firm, given the following: Debt Ratio = 95%, Quick Ratio = .9, Asset Utilization = 1.9, AR Days = 40

  What tax rate is required to meet budgetary demands

The total assessed property value in Frame town is $77,000,500. Budget planners have determined that $5,140,900 will required providing all government services next year. What tax rate is required to meet budgetary demands? (Express your answer as a ..

  Firm has an average inventory

North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 72 percent of sales. The firm has an average inventory of $23,000. How many days on average does it take the firm to sell its inventory?

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