You need to deposit each month to have enough money

Assignment Help Financial Management

Reference no: EM132064621

In five years time, you plan to pursue your further study on DBA. You know that graduate studies can be expensive and you estimate that it will cost $50,000 per year for tuition fee and other expenses. These payments will be made at the BEGINNING of the year. To have enough money to attend graduate school, you have decided to start saving TODAY by investing in a money market fund that pays 4% per annum with monthly compounding. You will make monthly deposits into the account starting TODAY for the next five years. How much will you need to deposit each month to have enough money for graduate school? (Assume that money that is not withdrawn remains in the account during graduate school and the DBA will take three years to complete). (without Excel)

Reference no: EM132064621

Questions Cloud

Marketing philosophy of commercial bank of ethiopia : Which of the philosophies discussed, do you think, is adopted by the bank. Substantiate your arguments with clear evidences

The frog and the bicycle-looking at systems : Utilising chapter 3 "The Frog and the Bicycle: Looking at Systems" (Intelligent Leadership, Alistair Mant) explain how the systems within an organisation

What will alvis report in the balance sheet : Alvis Corporation reports pretax accounting income of $400,000, What will Alvis report in the balance sheet pertaining to income taxes

Random walk model to forecast earnings and free cash flow : One can be almost as accurate, at virtually no cost, using the random walk model to forecast earnings and free cash flow.”

You need to deposit each month to have enough money : How much will you need to deposit each month to have enough money for graduate school?

What is the payback period : Company A bought new machinery for 5,135,000 million. It results in additional cash flows of 1,215,000 million over the next 7 years. What is the payback period

Why do the football coaches usually receive salaries : Do the relative salaries of humanities professors and football coaches at major state universities reflect the relative value of football and humanities?

Is tiffany an enduring luxury brand of unprecedented quality : Is Tiffany an enduring luxury brand of unprecedented quality, or has the lower-priced Tiffany trinkets and online diamond retailers tarnished the Tiffany brand?

Determines company price-to-book multiple : Using the Residual Income Valuation Model please demonstrate what determines a company’s price-to-book (P/B) multiple.

User Account

All Pages