Plan to buy a house

Assignment Help Financial Management
Reference no: EM131341373

You plan to buy a house in 15 years. you want to save money for a down payment on the new house. You are able to place $286 every month at the end of the months into a savings account at an annual rate 11.43% compounded monthly. How much money will be in the account after you made the last payment?

Reference no: EM131341373

Questions Cloud

What is the present value of the annuity : What is the present value of a $536 perpetuity discounted back to the present at 11.92 percent. What is the present value of the following annuity? You plan to apply for a loan from Bank of America. The nominal interest rate for this loan is 9.56 per..
Same yield-price plane with yield on the horizontal axis : Consider a bond (bond1) which matures in 30 years and a bond (bond2) which matures in 15 years. Both have a facevalue $100 and semi annunal coupon payment of 7%(2). Draw the price yield curves for bond1 and bond2 on the same yield-price plane with yi..
Afirms dividends have grown over the last several years : Afirms dividends have grown over the last several years. 6years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $7. What is the average annual growth of dividends.
What is present value of the annuity : What is the present value of the following annuity? $2,955 every year at the end of the for the next 10 years, discounted back to the present at 10.56 percent per year, compounded annually? Round the answer to two decimal places.
Plan to buy a house : You plan to buy a house in 15 years. you want to save money for a down payment on the new house. You are able to place $286 every month at the end of the months into a savings account at an annual rate 11.43% compounded monthly. How much money will b..
What is meant by pure play approach to estimating : It seemed like she was causing troubles wherever she went. At her previous job, Wendy had successfully persuaded the top management to implement a system that recognizes the differential risks for different divisions and evaluate projects based on ri..
What is the npv break-even level of diamonds sold per year : Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $160. The materials cost for a standard diamond is $60. What is the accounting break-even level of sales in terms of number of diamonds sold? What is the ..
Invest in a risk-free pure discount bond : Today is 01/01/02. On 06/30/03 we will have to make a payment of $100. We can only invest in a risk-free pure discount bond (nominal $100) that matures on 12/31/02 and in a risk-free coupon bond, nominal $100, that pays an annual coupon (on 12/31) of..
European call option contracts : You take a short position in 100 European call option contracts, with strike price $50 and maturity three months, on a stock that is trading at $52. The annual volatility of the stock is constant and equal to 22%. The annual, continuous risk-free int..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the current price of bond-current yield of bond

You are considering purchasing a General Electronic bond that has a compound rate of 6 %, per value of 1000 & a maturity of 25 yrs. The bond is callable for 10 yrs & if the bond is called you will be paid a premium of &100 over pay. The yield to matu..

  Make it worthwhile to incur a compensating balance

What interest rate would make it worthwhile to incur a compensating balance of $9,000 in order to get a 0.65 percent lower interest rate on a 2 year, pure discount loan of $165,000?

  Merchandise returned and subsequently receives

Skycrest Co., a furniture wholesaler, sells merchandise to Boyle Co. on account, $43,200, terms 1/10, n/30. The cost of the merchandise sold is $25,900. Skycrest Co. issues a credit memo for $8,600 for merchandise returned and subsequently receives t..

  Do you think there will be regulatory changes in the future

What is the likely impact of convergence on the insurance industry? Do you think there will be regulatory changes in the future? Why or why not?

  Compute the firms net operating income and net income

The Allen Corporation had sales in 2013 of $70 million, total assets of $43 million, and totla liabilities of $21 million. The interest rate on the company's debt is 5.6 precent, and its tax rate is 35 percent. The operating profit margin is 11 perce..

  Adopted policy of increasing the annual dividend

The Garden Shoppe has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 1.65 percent annually. The firm just paid an annual dividend of $1.84. What will the dividend be eight years from now?

  Using Chriss analysis-looking at demand for light aircraft

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris’s analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipmen..

  Predictions about weather patterns published years

An investor discovers that predictions about weather patterns published years in advance and found in the Farmer's Almanac are amazingly accurate. In fact, these predictions enable the investor to predict the health of the farm economy and therefore ..

  Expected return on an average investment in the market

You are considering the purchase of a common stock whose historical beta is .5. What rate of return should you require from this stock if the current risk free rate of return is 4% and the expected return on an average investment in the market is 11%..

  Calculate the expected full cost of the surenex engagement

Calculate the expected full cost of the Surenex engagement including an allocation of overhead?- What is the lowest amount that Connie can bill on this engagement without hurting company profit?

  Dividends are expected to grow at constant rate

Screenshot, Inc., just paid a dividend of $3.72 per share on its stock. The dividends are expected to grow at a constant rate of 3.6 percent per year, indefinitely. Assume investors require an 14.4 percent return on this stock. What is the expected p..

  Assume annual coupon payments

A 6%, 3-year bond yields 12% and a 10%, 3-year bond yields 8%. Calculate the 3-year spot rate. Assume annual coupon payments.

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