What amount should the investment grow in five years

Assignment Help Financial Management
Reference no: EM131026204

Angie invested $150,000 she received from her grandmother today in a fund that is expected to earn 10% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually?

Reference no: EM131026204

Questions Cloud

What are the order and the size of this graph : For an integer n, define the graph Tn as follows: Vertices are 2-element subsets of {1,2,...,n}. Two vertices are adjacent if they have one element in common.
What is the net present value of the project : Altman Hydraulic Corporation will invest $135,000 in a project that will produce the cash flow shown below. The cost of capital is 11 percent. (Note that the third year's cash flow is negative.) Use Appendix B. Year Cash flow 1 $ 46,000 2 54,000 3 (6..
Ethics & law overlap : 3.  Ethics & Law overlap. This is called... A. A) Yellow area B. B) White area
What circumstances will the holder of option make profit : Suppose that a march call option to buy a share for $50 costs $2.50 and is held until march. Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised?
What amount should the investment grow in five years : Angie invested $150,000 she received from her grandmother today in a fund that is expected to earn 10% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually?
Profit payoff matrix for oligopolists c and d : Explain the general meaning of the following profit payoff matrix for oligopolists C and D.  All profit figures are in thousands.a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries.
What is the value of the bradleys stock : The newspaper reported last week that Bradley Enterprises earned $2 per share this year. Bradley retains 60 percent of its earnings to reinvest in the company, where the return on the reinvestment is 14 percent. The cost of capital of Bradley is 12 p..
Prove that in a connected graph g every two longest paths : Prove that in a connected graph G every two longest paths have a common vertex.
What will be the balance : What will be the balance on September 1, 2020 in a fund which is accumulated by making $20,000 annual deposits each September 1 beginning in 2013, with the last deposit being made on September 1, 2020? The fund pays interest at 8% compounded annually..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the rear of the least expensive type of credit

The Proctor Company must arrange $235,000 financing for its working capital requirements for the coming year. Proctor can (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for one year at 7.8 percent simple..

  Find the price one should pay to produce a yield rate

A bond with a par value of $1000 has annual coupons at the end of each year for 10 years. The initial coupon rate is 7% and each coupon is 3% greater than the preceding coupon. The bond is redeemed for $1200 at the end of 10 years. Find the price one..

  How net present value and internal rate of return

"Explain how the Net Present Value (NPV) and Internal Rate of Return (IRR) analyses work and how they can be used to make financial investment decisions. Provide an example of the NPV analysis.

  Host of empirical evidence indicates that the gains

A host of empirical evidence indicates that the gains from a typical merger accrue to the shareholders of the target corporation, not to the shareholders of the acquiring corporation. It seems the acquiring corporation should be in the "driver’s seat..

  Dividends are anticipated to maintain growth rate

The next dividend payment by Halestorm, Inc., will be $1.76 per share. The dividends are anticipated to maintain a growth rate of 7 percent forever. If the stock currently sells for $34 per share, what is the required return?

  Studies the price movements of stock

You are an investor who studies the price movements of stock to identify patterns that are repetitive. By doing this, you have been able to earn higher returns than normal. This would be a violation of:

  Calculate the eac for both conveyor belt systems

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $204,000, has a four-year life, and requires $66,000 in pretax annual operating costs.  Calculate the EAC for both conveyor belt sy..

  Question 1 the following are the financial statements for

question 1 the following are the financial statements for hugo boss group for the financial years ending 2012 and

  What is the expected risk premium on the portfolio

You have decided to invest 30 percent in X; 30 percent in Y; and 40 percent in Z. The probability of the state of the economy is Boom 25%; Normal 60%; and, Bust 15%. The rate of return for stock X is Boom .20; Normal .15; and, Bust .00. The rate of r..

  What is your estimate of the stocks current price

A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.35,..

  What is the gibson paradox and fisher equation

Show the Interest rate equation and explain all the risk premiums embedded in the equation. What is the Gibson paradox?. What is the Fisher equation?.What is the relationship between these two concepts?

  According to our readings managing change is definitely a

1. nbspaccording to our readings managing change is definitely a proactive behavior that most managers and experts

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