What will the value of the investment be after 12 years

Assignment Help Financial Management
Reference no: EM131327427

Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually.

What will the value of the investment be after 12 years? If the deposits were made at the beginning of each period, what would the value of the investment be after 12 years?

Reference no: EM131327427

Questions Cloud

Development of reinforcements and punishments : Comment on the following: Explain the role of popular culture in the development of reinforcements and punishments. Describe what reinforcements and punishments might look like in the future, given current societal trends
Discuss about the watershed events : HIS 1102: What do you see as the key similarities and differences among these eras on this subject?Write on the same topical area you used for your midterm exam essay - for example, if you wrote your midterm about women, choose religion, political ..
Would you prefer making an investment : Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent compounded monthly or making the same $25,000 investment at 7 percent compounded annually?
Why do you think this behaviorist approach is best : Select one of the three behaviorists who, in your opinion, offers the most compelling argument for the use of behaviorism when teaching a new subject to an adult and to a child. Would that behaviorist use a different approach with a child? Why do y..
What will the value of the investment be after 12 years : What will the value of the investment be after 12 years? If the deposits were made at the beginning of each period, what would the value of the investment be after 12 years?
How much will you have at the end of four years : Suppose you deposit $1,250 at the end of each quarter in an account that will earn interest at an annual rate of 10 percent compounded quarterly. How much will you have at the end of four years?
Compute the estimated project cash flows : Steele-Greene Inc. (SGI) is considering a project to reduce costs in the production of engineered wood products. New equipment for the project would cost $280,000. Installation and setup costs would cost an additional $20,000. Compute the estimated p..
What explanation might there be for such a strategy : Before the merger, each of the separate newspapers was losing about $10 million per year. What forecast would you make for the merged firm's profits? Explain.
What would be total amount distributed over fifteenyear life : What would be the total amount distributed over the 15-year life of the building? Assuming that NIS's estimate of economic life was correct, what would likely be the market value of the building when the lease expired?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the reward-to-variability ratio of the portfolio

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 16% and a standard deviation of return of 20.0%. Stock B has an expected return of 12% and a standard deviation of return of 5%. The expected ret..

  Gilbert is considering purchasing the side steamer

Gilbert is considering purchasing the Side Steamer 3000 which cost $12,000 and has an estimated useful life of 6 years with an estimate salvage value of $1,500. This steamer falls into the NARC 5-year class with rates as 20.00%, 32.00%, 19.20%, 11.52..

  Compute the fair market value of the stock today

A stock is expected to pay dividends of $1.00, $0.75 and $2.00 for the next 3 years, respectively. After that time, dividends are expected to grow at a constant rate of 6% indefinitely. The required return on the stock is 10% during the non-constant ..

  What is the value of the leased fee estate based

A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the elev..

  Firm weighted average cost of capital

Wayco Industrial Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity 14.3 percent, and a cost of preferred stock of 8.5 percent. The company's tax rate is 37 percent. What is the firm's weighted average cost of capital?

  Global integration-growing importance of global marketing

Based on topic of Global Markets, please post your comments on any one of the two questions. More and more companies are looking beyond the domestic market. Identify and briefly describe some of the forces that have resulted in increased global integ..

  Created a thick institutional structure after world war

The strategy whereby the United States created a thick institutional structure after World War II was known as: détente, or easing of tension. tying hands, or self-binding. containment, or balancing. balance of terror, or mutually assured destruction..

  Several exercises to compute the EAR and APR on loan

Work out several exercises to compute the EAR and APR on a loan. Look at an amortization table and identify the declining interest throughout time.

  Company is considering an investment project

A company is considering an investment project with the following cash flows: Year 0 = -$160,000 (initial costs); Year 1= $50,000; Year 2 =$80,000; and Year 3 = $65,000.The company has a 8% cost of capital, calculate the NPV for the project ______

  What is the expected return and standard deviation of return

You manage an equity fund with an expected risk premium of 11.6% and a standard deviation of 30%. The rate on Treasury bills is 6.2%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $140,000 in a T-bill money market fun..

  The growth rate in dividends is expected

Bayou Okra Farms just paid a dividend of $3.55 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require a return of 14 percent for the first three years, a return of 12 percent for the..

  What is minimum number of shares you need to own to ensure

The shareholders of the Pickwick Paper Company need to elect five directors. There are 150,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vot..

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