What is the amount of each semiannual cash flow

Assignment Help Microeconomics

Reference no: EM132157825

Question: The first of a series of equal monthly cash flows of $2000 occurred on April 1, 2008, and the last of the monthly cash flows occurred on February 1, 2010. This series of monthly cash flows is equivalent to a series of semiannual cash flows. The first semiannual cash flow occurred on July 1, 2011, and the last semiannual cash flow will occur on January 1, 2020. What is the amount of each semiannual cash flow? Use a nominal interest rate of 12% with monthly compounding on all accounts.

Reference no: EM132157825

Questions Cloud

What is the required semiannual deposit : A contractor wishes to set up a special fund by making uniform semiannual end-of-period deposits for 20 years. The fund is to provide $10,000 at the end.

Explain the guidelines for conducting termination : Explain the guidelines for conducting a termination. Your Manager has just told you that you need to Crash your current Project by 2 weeks

Find the equivalent to sum of both cash flow series : Paco's saving account earns 13% compounded weekly and receives quarterly deposits of $38,000. His first deposit occurred on October 1, 2006.

Considering operating drive-up window food-service operation : A fast-food franchise is considering operating a drive-up window food-service operation.

What is the amount of each semiannual cash flow : The first of a series of equal monthly cash flows of $2000 occurred on April 1, 2008, and the last of the monthly cash flows occurred on February 1, 2010.

How much remains in the account after the last withdrawal : A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100.

Desirability of a capital budgeting project : Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark

What will be the balance in the account : PARC Company has money to invest in an employee benefit plan, and you have been chosen as the plan's trustee. As an employee yourself, you want to maximize.

Constant rate of percent per year : Blossom, Inc., is a mature firm that is growing at a constant rate of 5.00 percent per year.

User Account

All Pages