What recommendation would you make to aunt tillie

Assignment Help Finance Basics
Reference no: EM13294463

Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tillie?

Reference no: EM13294463

Questions Cloud

Define the clo2 molecule was involved in a chemical reaction : The ClO2 molecule was involved in a chemical reaction in which it underwent oxidation. Based on the change in oxidation numbers, which of the species listed below is a possible product of the reaction
Calculate the work done by the field on the electron : A uniform electric field of magnitude 395 N/C pointing in the positive x-direction acts on an electron, What is the work done by the field on the electron
What will the dollar amount of sales be in year five : China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five?
Explain a final volume of naoh and an initial volume : When you are trying to calculate molarity, what volume do you use? I have a final volume of NaOH and an initial Volume and volume of NaOH
What recommendation would you make to aunt tillie : She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tillie?
What is the average expected inflation rate over the 5 year : Assume that at the beginning of 2008, the rate of inflation expected for 2008 is 4 percent; for 2009 it is expected to be 5 percent; for 2010 it is expected to be 7 percent; and for 2011and every year thereafter, it is expected to settle at 4 perc..
Explain sodium dihydrogenphosphate : A phosphate buffer solution (25.00 mL sample) used for a growth medium was titrated with 0.1000 M hydrochloric acid. The components of the buffer were sodium monohydrogenphosphate and sodium dihydrogenphosphate
Find the magnitude of the necessary lifting force : A jet flying at 107 m/s banks to make a horizontal circular turn. The radius of the turn is 3810 m, Calculate the magnitude of the necessary lifting force
How much time is required for the bullet to reach the target : A bullet is fired horizontally with an initial velocity of 865 m/s at a target located 150 m from the rifle. How much time is required for the bullet to reach the target

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the highest price for stock

The last dividend on Spirex Company's common stock was $4, and the expected growth rate is 10%. If you require a rate of return of 20%, Determine the highest price for this stock?

  What inflation rate is expected after year 1

If the yield on 3-year Treasury bonds equals the 1-year yield plus 2.25%, what inflation rate is expected after Year 1? Round your answer to two decimal places.

  What real interest rate

If investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is?

  How much was the firms taxable income

It had $8,000 of bonds outstanding that carry a 14% interest rate. How much was the firm's taxable income, or earnings before taxes (EBT)?

  What is the best reason for that decision

You are considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should you accept and what is the best reason for that decision?

  Compute patent amortization

Alpha Enterprises acquired a patent from Simpson Research Company on 1/1/01 for $4million. The patent will have a useful life of ten years, even though it's legal life is twenty years.

  What is the weighted average beta of a portfolio

What is the weighted average beta of a portfolio with $75,000 invested in Company A with a beta of 1.35, $125,000 invested in Company B which has a beta of 1.8, $25,000 in Company C with a beta of .65, and $85,000 in Company D which has a beta of ..

  Applications of basic tvm concepts

Jean Splicing will receive $50,000 in 50 years or $2,000 today. If long-term rates are 7 percent, what choice would you recommend? Find out the current value of the future payments

  Description of present value of growth opportunities

Next year's earnings are estimated to be $6.00. The company plans to reinvest 33% of its earnings at 12%. If the cost of equity is 8%, what is the present value of growth opportunities?

  Valuation principle problems

Valuation Principle Problems: Suppose that Bondi Inc. is a holding company that owns both Pizza Hut and Kentucky Fried Chicken Franchised Restaurants. If the value of Bondi is $130 million, and the Pizza Hut Franchises are worth $70 million, then wha..

  How many cases of cheese should jason manufacture

Unfortunately, any cases not sold by the end of the month are of no value, due to spoilage. How many cases of cheese should Jason manufacture each month?

  What is the times interest earned ration

Pizza Palace has sales of $428,000, depreciation of $26,500, interest of $1,800, net income of $21,400 and a tax rate of 32%. What is the times interest earned ration?

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