What if you wait ten years before contributing

Assignment Help Financial Management
Reference no: EM131579100

You have just made your first $4,000 contribution to your individual retirement account. Assume you earn an annual return 11.05 percent and make no additional contributions. What will your account be worth when you retire in 44 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value $

What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value

Reference no: EM131579100

Questions Cloud

Assume the returns from holding small-company stocks : Assume the returns from holding small-company stocks are normally distributed.
Corporate bond with semi-annual coupon payments : You are thinking of purchasing a corporate bond with semi-annual coupon payments.
What is this bond current yield to maturity : What is this bond’s current yield to maturity?
Old stock price-exercising rights buying shares ex-rights : Calculate the ex-rights price that will make new stockholder indifferent between buying shares at old stock price-exercising the rights buying shares ex-rights.
What if you wait ten years before contributing : You have just made your first $4,000 contribution to your individual retirement account. What if you wait 10 years before contributing?
Purchasing corporate bond with semi-annual coupon payments : You are thinking of purchasing a corporate bond with semi-annual coupon payments.
Projects unit sales for new seven-octave voice emulation : Aria Acoustics, Inc., (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: What is the IRR of the project?
How sensitive is ocf to changes in quantity sold : Consider a three-year project with the following information: initial fixed asset investment = $850,000; How sensitive is OCF to changes in quantity sold?
Calculate the present worth of both projects : You are considering two investment options. Calculate the present worth of both projects.

Reviews

Write a Review

Financial Management Questions & Answers

  What is pretax cost of debt and cost of equity capital

MV corporation has debt with Market value of $100 million, common equity with a book value of $100 million, and preferred stock woth $20 million outstanding. Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semian..

  Start saving for retirement beginning next year

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $70,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next yea..

  Calculate the number of periods you have been offered

Calculating the Number of Periods You've been offered an investment that will pay you 9 percent per year. If you invest $15,000, how long until you have $30,000?

  Bonds outstanding with coupon rate

Union Local School District has bonds outstanding with a coupon rate of 3.6 percent paid semiannually and 17 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bon..

  Determining the statement of cash flows

You are a manager and now you are asked to define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows. Approximately 2-3 pages.

  Each year to your retirement account to achieve your goal

How much must you contribute (in real dollars) each year to your retirement account to achieve your goal?

  Decision tree analysis and foreign exchange transactions

For the quantitative portions of this class, such as present value, IRR, decision tree analysis, evaluation of options, foreign exchange transactions: What method of teaching, or what types of problem solving, help you to learn the best? What type of..

  Complete the financial statements

Complete the statements before a major deadline. One other piece of good news-some financial ratios were calculated and you have a few other scraps of information.

  Mortgage loan-what is the monthly payment

A mortgage loan is made for $225,000. The term of the loan is 30 years with monthly payments. The interest rate is %5. What is the monthly payment? What would the loan balance be after 10 years?

  Market value ratios indicate

Market value ratios indicate:

  Compute the annualized rate of return

compute -  the annualized rate of return on this investmentif you had paid cash, and -  your rate of return with the margin purchase.

  Option pricing model to price the call option

The current stock price of a company is $68 and the stock is expected to have a dividend yield 3% per year. The instantaneous risk free rate of return is 3.5%. The instantaneous standard deviation of its stock is 35%. Using the Black-Scholes Option P..

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