Planning large anniversary party

Assignment Help Financial Management

Reference no: EM131445274

You and your sister are planning a large anniversary party 3 years from today for your parents' 50th wedding anniversary. You have estimated that you will need $6,500 for this party. You can earn 2.6 percent compounded annually on your savings. How much would you and your sister have to deposit today in one lump sum to pay for the entire party?

Reference no: EM131445274

Questions Cloud

What is the external financing needed : The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 34,000 Assets $ 57,700 Debt $ 22,500 Costs 24,500 Equity 35,200 Taxable income $ 9,500 Total $ 57,700 Total $ 57,700 Taxes (40%) 3,800 Net in..

What is the sustainable growth rate : Assume the following ratios are constant: Total asset turnover 2.0 Profit margin 5.1 % Equity multiplier 1.2 Payout ratio 25 % What is the sustainable growth rate?

Prepare a monthly cash budget : Prepare a monthly cash budget for Cyrus Brown Mfg for a 9-month period March through November using the data below in excel: March - $100,000, April $275,000, May - $320,000, June - $450,000, July - $700,000, August - $700,000, Sept - $825,000, Octob..

An inflation-indexed treasury bond : An inflation-indexed Treasury bond has a par value of $1,000 and a coupon rate of 2 percent. An investor purchases this bond and holds it for one year. During the year, the consumer price index increases by .25 percent every six months. What are the ..

Planning large anniversary party : You and your sister are planning a large anniversary party 3 years from today for your parents' 50th wedding anniversary. You have estimated that you will need $6,500 for this party. You can earn 2.6 percent compounded annually on your savings. How m..

The cost of the product and fixed operating expenses : Accents Associates sells only one product, with a current selling price of $200 per unit. Variable costs are 20% of this selling price, and fixed costs are $50,000 per month. Management has decided to reduce the selling price to $195 per unit in an e..

The power of rippling effect of adding money : The power of a "rippling effect" of adding money to the financial system is measured by the ________. Which of the following will decrease the present value of a perpetuity, other things equal?

Project npv-widget manufacturer currently produces : Project NPV A widget manufacturer currently produces 200,000 units a year. It buys widget lids from an outside supplier at a price of $2 a lid. The plant manager believes that it would be cheaper to make these lids rather than buy them. Direct produc..

Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $49, sells it at year-end at $49, and receives a $4 year-end dividend. The firm is in the 30% tax bracket.

User Account

All Pages