What is the present value of security

Assignment Help Financial Management

Reference no: EM131308890

1. If you deposit $3,000 in a bank account that pays 9% interest annually, how much will be in your account after 5 years? Round your answer to the nearest cent.

2. What is the present value of a security that will pay $22,000 in 20 years if securities of equal risk pay 4% annually? Round your answer to the nearest cent.

Reference no: EM131308890

Questions Cloud

Explain why shareholders benefit when wacc is minimized : Firm has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Explain why shareholders benefit when WACC is minimized. Discuss any other concerns managers might face when s..

Present-future values of cash flow stream : An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? If other investme..

How will cross-forest trusts be implemented : CMIT-371 Windows Network ServicesProposal- How will Forest Functional Levels be implemented? How will cross-forest trusts be implemented? How will replication be handled? Read-Only Domain Controllers - how and where will they be used?

Future value-annuity versus annuity due : What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your answer to the nearest cent. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

What is the present value of security : If you deposit $3,000 in a bank account that pays 9% interest annually, how much will be in your account after 5 years? What is the present value of a security that will pay $22,000 in 20 years if securities of equal risk pay 4% annually?

What is investment banking : What is investment banking? How would an investment banker assist an organization in going public? As a chief financial officer, what information would you need to select an investment banker?

What is your profit? from these transactions : Last year you sold short 400 shares of stock selling at ?$71.75per share. Six months later the stock had fallen to ?$33.82 per share. Over the? six-month period the company paid out two dividends of ?$1.89 per share. Your total commission cost for se..

What are strength for current and future of given app : What are strength for current and future of app (application to be used for smart phone like devices) in term of development. At least 2 paragraph with two in-text reference.

Future technology and future increase in costs : The information technology department has recently completed a major refurbishment and upgrade of the city's data center, at a cost of $10,145,825. The chief information officer (CIO) has informed the central budget office that the IT department will..

User Account

All Pages