Your grandmother just died and left you 132500 in a trust

Assignment Help Corporate Finance
Reference no: EM13380669

Your grandmother just died and left you $132,500 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at thebeginningof each of the next 3 years and end up with zero in the account?

Reference no: EM13380669

Questions Cloud

Solve using excel formulas preferred or clearly write out : solve using excel formulas preferred or clearly write out the steps you took to calculate your answers.nbspnbsp round
Paper on raytheon corporationnbsp rtn with the following : paper on raytheon corporationnbsp rtn with the following questions that need to be answered find out on raytheon
Part 1 how should regulators verify and validate a banks : part 1 how should regulators verify and validate a banks internal ratings based models. what measures should they use
1 from the information below compute the average annual : 1. from the information below compute the average annual return the variance standard deviation and coefficient of
Your grandmother just died and left you 132500 in a trust : your grandmother just died and left you 132500 in a trust fund that pays 6.5 interest. you must spend the money on your
Magellen industries is analyzing a new project the data : magellen industries is analyzing a new project. the data they have gathered to date is as followsinitial requirement
Surgico a manufacturer of consumer plastic products is : surgico a manufacturer of consumer plastic products is evaluating its capital structure. the balance sheet of the
The managers of ponchoparts inc plan to manufacture engine : the managers of ponchoparts inc. plan to manufacture engine blocks for classic cars from the 1960s era. they expect
A three -year project will cost 60000 to construct this : a three -year project will cost 60000 to construct. this will be depreciated straight-line to zero over the three-year

Reviews

Write a Review

Corporate Finance Questions & Answers

  What would your indexs rate of return be

If you follow the averaging procedure used to calculate the S&P 500 Index return, what would your index's rate of return be?

  Evaluate future value using the savings and graduation gift

Evaluate the future value using the savings and graduation gift - what will his financial  be when he leaves for Australia 5 years from now?

  Analyzing each of profitability ratios for jackson

write a paragraph analyzing each of the profitability ratios for Jackson, Inc. given the following information from previous years and competitors - Net income should have a double underline.

  How sensitive is the npv to changes in the price

How sensitive is the NPV to changes in the price of the new CAS and how sensitive is the NPV to changes in the quantity sold of the new CAS?

  Problem baobab rolling mills owns a lathe machine which was

problem baobab rolling mills owns a lathe machine which was purchased 10 years ago at sh. 75 million. the machine had

  Find present value of all the shops future profits

Past year, a barber shop created $100,000 in profit. Suppose that the shop's profits grow at 5% per year and that cash flows are discounted at 10 percent per year.

  What is the projects apv in the cases

Calculate the weighted-average cost of capital (WACC) for Federated Junkyards of America and what is the project's APV in the cases

  Question 1 the exercise price on one of orne corporations

question 1 the exercise price on one of orne corporations call options is 35 and the price of the underlying stock is

  Compute current stock price

Otobai Motor Corporation is currently paying a dividend of $1.40 each year. The dividends are expected to grow at a rate of 18% for next 3-years and then a constant rate of 5 percent thereafter forever.

  What impact would the new capital structure have

What impact would the new capital structure have on the firm's net income, total dollar return to investors, and ROE and redo the analysis, but now assume that the debt financing would cost 15 percent.

  Find the total interest expense

What is the total interest expense over the life of the bonds cash interest payments? Premium amortization?

  Quantitative vs tarditional fundamental analysis

Quantitative vs tarditional fundamental analysis Would you propose that the acquisition or merger target have a high or low equity value-to-earnings multiple

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