What is the future value-interest rate

Assignment Help Financial Management
Reference no: EM13848160

What is the future value of $2,900 in 19 years assuming an interest rate of 8.2 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Future value    $

Reference no: EM13848160

Questions Cloud

What is the gain to netflix with this lease rate : Suppose Netflix is considering the purchase of computer servers and network infra- structure to facilitate its move into video-on-demand services. In total, it will purchase $48 million in new equipment. What is the lease rate for which the lessor wi..
Fixed-rate mortgage to buy new home-balloon payment : You need a 35-year, fixed-rate mortgage to buy a new home for $310,000. Your mortgage bank will lend you the money at an APR of 6.05 percent for this 420-month loan. How large will this balloon payment have to be for you to keep your monthly payments..
Computer equipment on straight-line basis : Suppose Clorox can lease a new computer data processing system for $975,000 per year for five years. Alternatively, it can purchase the system for $4.25 million. If Clorox will depreciate the computer equipment on a straight-line basis over the next ..
Default would equity holders preference for leasing plane : Western Airlines is considering a new route that will require adding an additional Boeing 777 to its fleet. Western can purchase the airplane for $225 million or lease it for $25 million per year. As a one-year decision, does purchasing or leasing th..
What is the future value-interest rate : What is the future value of $2,900 in 19 years assuming an interest rate of 8.2 percent compounded semiannually?
Compute the value of green valley company bonds : Green Valley company bonds have a 10.66 percent coupon rate. Interest is paid semi annually. The bonds have a par value of $1000 and will mature 16 years from now. Compute the value of Green Valley company bonds if investors' required rate of return ..
Assume required rate of return : What is the value of a bond that has a par value of $1000, a coupon rate of 8.26% paid annually and that matures in 30 years? Assume a required rate of return on this bond is 8.65%.
Investment be tripled at nominal rate of interest : If an investment will be doubled in 8 years at a force of interest δ, in how many years will an investment be tripled at a nominal rate of interest numerically equal to δ and convertible once every three years?
Calculate mollycaits operating breakeven point : Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little figurines as gifts for friends.  Calculate Mollycaits' operating breakeven point. Calculate Mollycaits' EBI..

Reviews

Write a Review

Financial Management Questions & Answers

  How many euros would a dollar buy tomorrow

"Suppose that 1 Euro could be purchased in the foreign exchange market today for $0.25. If the Euro appreciated 10 percent tomorrow against the dollar, how many Euros would a dollar buy tomorrow?"

  Project to improve its production efficiency

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $495,000 is estimated to result in $194,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Ta..

  Considered to be independent of financial leverage

Why is EBIT generally considered to be independent of financial leverage? Why might EBIT be influenced by financial leverage at high debt levels?

  Common stockholders have a residual claim to income

Common stockholders have a residual claim to income. Bondholders may force a corporation into bankruptcy for failure to make interest payments. Common stockholders are legally entitled to some dividend.

  Futures contract on treasury bonds

Boyd Company sold a futures contract (one) on Treasury bonds that specified a price of 93-00. When the position was closed out, the price of the Treasury bond futures contract was 94-20. Did interest rates increase or decrease? How do you know? What ..

  Interested in diversifiable risk or non-diversifiable risk

Assume that most investors put together a well-diversified portfolio, and mangers manage in the interest of the well diversified shareholder. Should the manager be more interested in the diversifiable risk or non-diversifiable risk a project brings t..

  Equally weighted in the risk free asset

The risk free rate is 4%, and the expected return on the market is 12%. There is also an asset X with a Beta of 1.5.What is the return on portfolio 1 consisting of 40% of asset X and the rest in an asset with no risk? What is the return on portfolio ..

  What are the nal and irr of the lease

Interpret each value.b. Assume now that the bank loan would cost 15 percent, but all other facts remain the same. What is the new NAL? The new IRR?

  Two different bonds currently outstanding

The Smith Company has two different bonds currently outstanding. Bond A has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $800 every six months over the subsequent eight years, and fina..

  What is the yield to maturity for these bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $469 per bond. Each bond has a face value of $1,000 payable at maturity in 10 years. What is the yield to maturity for these bonds?

  What would be the monthly payments on the new loan

Five years ago you borrowed 200,000 to finance the purchase of a 240,000 home. The interest rate on this (old) mortgage is 10% MEY, and the level payments were made monthly to amortize the loan over 30 years (you did not curtail the loan in any way, ..

  Use linear interpolation to estimate the yield

The yield of strawberry plants depends on the amount of fertilizer fed to the plants. Agricultural research shows that an acre of strawberry plants will yield 500 pounds of strawberries when 50 cubic feet of fertilizer are applied. If 70 cubic of fee..

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