What is the value of the fund today

Assignment Help Financial Management
Reference no: EM13728373

Your brother, who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?

Reference no: EM13728373

Questions Cloud

What is correlation coefficient between returns of two stock : The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1210. What is the correlation coefficient between the returns of the two stocks?
What are the competitive challenges that google now faces : Google®, one of the leading global technology companies, has strategic planning at the heart of its success. What are the competitive challenges that Google now faces
Is it ethical when making a disciplinary decision : Is it ethical when making a disciplinary decision for absenteeism to be consistent with each employee or is ethical and morally correct to treat each employee as an individual
Calculate the value of fraziers stock : Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.
What is the value of the fund today : Your brother, who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?
Take the rebate and use the financing from the bank : Kyle Parker of Fayetteville, Arkansas, has been shopping for a new car for several weeks. So far, he has negotiated a price of $27,000 on a model that carries a choice of a $2500 rebate or dealer financing at 2 percent APR. The dealer loan would requ..
In what strategic ways could joe coulombe have changed : Trader's Joes symbolizes the entrepreneurial spirit in everything they do (just like their Founding Father, Joe Coulombe). In what strategic ways could Joe Coulombe have changed his convenience stores to be able to survive and compete when 7-Eleven..
What do principle-based ethical frameworks address : What do principle-based, ethical frameworks address. paraphrased and quoted material must have accompanying citations.
What is the future value-compounded quarterly : What is the future value of $1,400, placed in a saving account for four years if the account pays 0.10, compounded quarterly?

Reviews

Write a Review

Financial Management Questions & Answers

  Using the assumption that sales will increase 20 in the

research a company of your choice and locate the latest financial statements published by the company.for the following

  New purchase price for the existing stockholders

Katie Homes and Garden Co. has 10,640,000 shares outstanding. The stock is currently selling at $52 per share. If an unfriendly outside group acquired 25 percent of the shares, existing stockholders will be able to buy new shares at 30 percent below ..

  Accept projects based upon fluctuations in cost of capital

What qualitative considerations are important for a company seeking to raise capital? Answer this by considering the effect of leverage in your response. Specifically, what expected effects will additional leverage have on a company’s decision to acc..

  Find two consecutive years of financial statements

Provide recommendations for future business activity based upon your assessment. Cite references from your library research to support your conclusions of the company's performance based upon your analysis and financial ratio evaluations

  Rate of return on stock using capital asset pricing model

Given the following data for a stock: beta = 1; risk-free rate = 4%; market premium = 6%. Calculate the expected rate of return on this stock using the capital asset pricing model.

  Decision affect the other elements of working capital

What factors may lead an organisation to change the level of inventories that it holds? How could such a decision affect the other elements of working capital?

  How much will our new proposal cost the taxpayers

Our new project proposal will require roughly 500 hours of total staff time and $1,000 in materials. Our total staff budget is $520,000 for 10 full time equivalents (FTE). How much will our new proposal cost the taxpayers?

  Bond valuation-interest payment

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturit..

  Explain the default risk and liquidity premiums for bonds

The default risk and liquidity premiums for this company's bonds total 0.9 percent and are believed to be the same for all bonds issued by this company. If the average inflation rate is expected to be 5 percent for years 5, 6, and 7, what is the y..

  What is the expected return on the market

What is the expected return on the market and What is the risk-free rate?

  What is the net present value and internal rate of return

What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of spending $350 today on an energy efficient appliance which will save you $150 a year for the next three years assuming you could invest this money elsewhere and earn 10%?

  Find arrows variances for factory overhead

Evaluate Arrow's direct material variances, compute Arrow's direct labor variances and find Arrows variances for factory overhead.

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