Two investment accounts, You have your choice of two

Two investment accounts

Assignment Help Financial Management

Reference no: EM131446055

You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of- month $1, 650 payments and has an interest rate of 7.8 percent compounded monthly. Investment B is a 7.3 percent continuously compounded lump sum investment, also good for 13 years.

How much money would you need to invest in B today for it to be worth as much as Investment A 13 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131446055

Questions Cloud

Why accurate marketing information is important to company : For this discussion, you will review the Company History of "B2E Marketing and Solutions" (a fictional company), the Employee Biographies and the Scenario for Case Study titled: "Makin' a List, Checkin' it Twice." Imagine yourself in the given sit..

Formal term paper proposal : For this class, you must turn in a formal term paper proposal in which you propose a topic for your term paper. The due date for your proposal is shown in the syllabus. Your proposal must contain the following items:

Prepare the income statement for the year ended december : Acct 211- Prepare the income statement for the year ended December 31, 2015. Prepare the statement of owner's equity for the year ended December 31, 2015. Prepare Chiara Company's balance sheet as of December 31, 2015.

Evaluate the potential B2C and B2B customer segments : Assignment 1 requires you to initially evaluate the potential B2C and B2B customer segments that make up the DSO's market. You then select a specific B2C, as well as a specific B2B segment, for targeting and provide rationale for your selections,..

Two investment accounts : You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of- month $1, 650 payments and has an interest rate of 7.8 percent compounded monthly. How much money would you need to invest in B today for it to b..

Examine how your organization currently manages it : Examine how your organization currently manages IT. Then provide future IT management plans. Be sure to include how your organization currently manages technology threats and cyber attacks.

Buybacks can be used to maintain certain stock price range : Stock buybacks should be considered with other alternative investments, using the same criteria of payback, NPV or IRR. Buybacks can be used to maintain a certain stock price range. Buybacks are placed into treasury stock and can be used later as cur..

Think the future potential of the stock warrants : Choose a stock that is publicly traded and explain how you think the future potential of the stock warrants the price it sells at today?Calculate the current return on a stock of your choice and compare it to returns on bonds. Which is better to inve..

Marketplace about future prospects for the firm : A stock dividend is a lower cost alternative to a cash dividend and can be considered at all but the initial stages of a corporate life cycle. A poison pill strategy should be considered long before an invasive corporate raider attempts to buy your f..

User Account

All Pages