What is the future value of this investment

Assignment Help Financial Management
Reference no: EM13953898

Imagine homer simpson invested 100000 5 years ago at a 14% annual interest rate. if he invested an additional 2200 a year at the beginning of each year for 10 years at the same 14 % annual rate, how much money will homer have 10 years from now?

A. if invested 100000 5 years ago at a 14 percent annual interest rate, wat is the future value of this investment 10 years from now

B. if homer invested an additional 2200 a year at the beginning of each year for 10 years, at the same 14 percent, what is the future value of this investment 10 years from now?

C. how much money does homers have 10 years from now?

Reference no: EM13953898

Questions Cloud

What is your rate of return : Assume that on 1/1/12 you purchased an investment for $3000. The investment pays you $200 on 12/31 of every year that you hold the security. On 1/1/17 you sell the investment for $3500. What is your rate of return? Round your answer to the nearest te..
All the equity used is from retained earnings : Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $80.00 a share. The before-tax cost of debt is 7.50%, an..
Immediate impacts on operating income or operating cash flow : If a firm reduced its allowance for bad debts from 2.5% to 1.5%, would there be any immediate impacts on operating income or operating cash flows? A firm has been generating a stable ROE despite a steadily falling operating income. Give one reason wh..
Break even analysis utilizes both current-projected figures : Break even analysis utilizes both current and projected figures. in a rapidly changing economy, there are many individuals who are finding that their break even analyses were incorrect. What could be done to minimize errors in projections?
What is the future value of this investment : Imagine homer simpson invested 100000 5 years ago at a 14% annual interest rate. if he invested an additional 2200 a year at the beginning of each year for 10 years at the same 14 % annual rate, how much money will homer have 10 years from now? if ho..
Considering the purchase of a new production machine : Part 1 Garcia's Truckin Inc. is considering the purchase of a new production machine for $200,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $50,000 per year. To operate the machine properly, wor..
A project requires an initial investment : A project requires an initial investment of $200,000 and expects to produce a cash flow before taxes of 120,000 per year for two years (i.e., cash flows will occur at t = 1 and t = 2). The corporate tax rate is 30%. The assets will depreciate using t..
When a projects net present value exceeds zero : When a project’s net present value exceeds zero, then:
Person requires greater return when risk increases : If a person requires greater return when risk increases, that person is said to be:

Reviews

Write a Review

Financial Management Questions & Answers

  What is the probability that this stock

A stock had returns of 14 percent, 26 percent, and 8 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 43.51 percent in any one given year?

  What is the economic order quantity

Rock Bottom Carpets sells 5,600 carpets a year at an average price per carpet of $1,490. The carrying cost per unit is $22.37. The company orders 500 carpets at a time and has a fixed order cost of $69 per order. The carpets are sold out before they ..

  How much was the interest expense

Breads ‘R Us had sales of $35,000 last year. Their total costs were $12,000, and the depreciation charge was $3,000. They have 1,480 shares outstanding and paid dividend of $2.20 per share after keeping 70 percent of the net income as retained earnin..

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  After-tax cash flow analysis

Consider the following data for 2007 from an after-tax cash flow analysis.What is the after-tax cash flow for 2007?

  Evaluating two different cookie-baking ovens

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after tax) of –$11,200 per year. The Keebler CookieMunster costs $96,000, has a 7-year life, and has an annual OCF (after..

  Assume the information for home mortgage

Assume the following information for a home mortgage: Original loan amount = $130,000 Annual interest rate = 5.75% Term of loan = 30 years. How much principal and interest was paid in year four, and what is the principal balance on the loan after fou..

  Forward hedge or a money market hedge

Alpha Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. Alpha's weighted average cost of capital is 10%. Given this information, determine whether a for..

  What is the maximum dollar purchase you can make

You have $30,000 and decide to invest on margin. If the initial margin requirement is 60 percent, what is the maximum dollar purchase you can make?

  What is the dispersion trade

Suppose that the AB2 is an equally-weighted stock index of two stocks; it is designed as simply the sum of the two stocks’ prices. Stock A has a volatility of .2, stock B has a volatility of .4, and the current correlation between the two stocks is ...

  Value of interest rate call option at maturity of loan

Determine the value of an interest rate call option at the maturity of a loan if the call has a strike of 12 percent, a face value of $50 million, the loan matures 90 days after the call is exercised, the call expires in 60 days, the call premium is ..

  An fi must make a single payment of 500000 swiss francs in

an fi must make a single payment of 500000 swiss francs in six months at the maturity of a cd. the fis in-house analyst

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