What is the present value of a monthly payment

Assignment Help Finance Basics
Reference no: EM13298759

A If you were to save $5000 every year for the next ten years, and you could invest at a rate of 12% on average, what would be the total value of your investment in 10 years?

B What is the present value of a monthly payment of $200, for every month, through the next 8 years? Assume that the rate of interest is 6% annually.

C At what rate of interest would you need to invest in order for a savings of $20,000 per year to be worth one million dollars after 25 years?

Reference no: EM13298759

Questions Cloud

Engaging in unethical conduct using derivatives : What is the difference between making a bad business decision associated with derivatives and engaging in unethical conduct using derivatives?
Calculkate how far should the mirror be from the wall : A luminous object is 3.60m from a wall. You are to use a concave mirror to project an image of the object on the wall, How far should the mirror be from the wall
What is the cubic feet of gas storage space in fault block : After injecting 50 MMSCF (14.7 psia and 60 oF), the pressure increase from 2500 to 3500 psia. Deviation factors for the gas are 0.90 at 3500 and 0.80 at 2500 psia and the bottom-hole temperature is 160 oF. What is the cubic feet of gas storage spa..
What does it mean to be human-how do you define personhood : What does it mean to be human? How do you define personhood? How does one's understanding of what it means to be human influence ethical and moral decisions in nursing and health care?
What is the present value of a monthly payment : If you were to save $5000 every year for the next ten years, and you could invest at a rate of 12% on average, what would be the total value of your investment in 10 years?
What is the minimum expected annual return for stock : If Stocks 1 and 2 have expected returns of 9 percent and 10 percent per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Glenda to achieve her investment requirement?
Why is wood more common in residential construction in us : why is wood more common in residential construction in the US and concrete more common in commercial construction
What is the frequency for given channel : TV-reception antennas for VHF (channels 2 through 13) are constructed with cross wires supported at their centers, What is the frequency for channel 4
What is your expected starting salary : Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the minimum expected annual return for stock

what is the minimum expected annual return for Stock 3 that will enable Sara to achieve her investment requirement?

  Make an equation for the number of cups sold

Assume you had a lemonade stand, and when you charge $1 per cup pf lemonade you sell 60 cups. But when you raise the price to $1.50 you only sell thirty cups.

  True or false question based on stock valuation

There are Two investors are evaluating General Motors stock for a possible stock buy. They agree on the expected value of and also on the expected future dividend increase rate.

  What is the growth rate expected for emery company

Emery Company just paid a dividend of $2.25 per share. The company's stock is currently selling for $60 per share, and the required rate of return on Emery Company stock is 16%. What is the growth rate expected for Emery Company dividends assuming..

  Which of the following would likely encourage a firm

Which of the following would likely encourage a firm to increase the debt in its capital structure?

  What is the stock worth today

WSU Inc. is a young company that does not yet pay a dividend. You believe that the company will begin to pay dividends 5 years from now, and that the company will then be worth $50 per share. If your required rate of return on this risky stock is ..

  What was keys last dividend

Keys Inc's stock has a required rate of return of 10%, and it sells for $40 per share. Keys' dividend is expected to grow at a constant rate of 7% per year. What was Keys' last dividend, D0? Show your work and/or inputs used on financial calculato..

  What is the company total market value of debt

Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 6 years ago. The bond currently sells for 90 percent of its face value. The book value of the debt issue is $20 million. The company's tax rate is 34 percent, and the bond has a YT..

  What is the net present value of this cash flow stream

If you receive $1,177 at the end of each year for the first three years and $4,724 at the end of each year for the next three years. What is the net present value of this cash flow stream? Assume interest rate is 4.3%.

  What is the value of a six month call option

A futures price is currently 40 cents. It is expected to move up to 44 cents or down to 34 cents in the next six months. The risk-free interest rate is 6%. What is the value of a six month call option with a strike price of 39 cents?

  What are maria options

If Maria files a complaint in the appropriate court, will she be successful? Discuss why or why not.

  What are the book and market values of the firm

He then formed a corporation and invested $400,000 in setting up a production plant. If the professor's belief is correct, what are the book and market values of the firm?

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