How much money does Alex need to deposit into an account today if the account earns 2.5%

Fantastic news! We've Found the answer you've been seeking!

Question:

How much money does Alex need to deposit into an account today if the account earns 2.5% interest compounded semi-annually if his goal is to have $1500 in 18 months.

Related Book For answer-question

Principles of Managerial Finance

ISBN: 978-0134476315

15th edition

Authors: Chad J. Zutter, Scott B. Smart

See More Books

Posted Date: May 11, 2023 12:13 AM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
When calculating compound interest, the compounding frequency affects only the periodic interest rate, i. true or false "What amount is needed today to acquire $1000 in 2 years if interest is gained...
1 Wong opens a savings account and deposits an initial amount of RM5,000 into it. He plans to deposit RM6,000 into the account after two years and another RM4,000 three years from today. How much...
Bryce owns 200 shares of Basic Company stock that he purchased for $8,000 three years ago. On December 28, 2021, Bryce sold 100 shares of the stock for $2,500. On January 3, 2022, Bryce repurchased...
A simple pendulum has a wire of length supporting a metal ball of mass m. The wire has negligible mass and moves in a uniform horizontal magnetic field B. This pendulum executes simple harmonic...
Karm Inc. operates a facility that contains two manufacturing facilities: Division A and Division B. Currently, Karm Inc. has practical capacity to operate for a total of 25,000 hours per year. For...
And the big extra-credit assignment is to find someone who actually uses Excel for daily data analysis needs. Ask why he or she uses Excel rather than a more specialized program such as SPSS or...
Caleb Corp. has prepared the following unit sales forecast for 2011: Estimated ending Finished Goods Inventories are 50,000 units at December 31, 2010; 72,000 units at June 30, 2011; and 120,000...
The information below is extracted from Coles Ltd's 2021 Income Statement and Balance Sheet. Item Amount (in $ millions) Sales 38,955 Cost of Goods Sold (COGS) 30,286 Accounts Receivable 368...
Implement the following LP problem in a spreadsheet. Use Solver to solve the problem and create a Sensitivity Report. Use this information to answer the following questions: MAX: 4X1 + 2X2 Subject...
Ralirali Corporation's financial statements included the following amounts for the current year: $98,000 Issued new shares of preferred stock Loaned cash to key supplier 26,000 51,000 21,000 31,000...
a. Draw a curve showing the following situation. As a firm hires more workers (X), its total revenue (Y) increases. However, total revenue increases at a decreasing rate such that each worker adds...
Mower Ltd started in business on 1 April 2015. Its issued share capital was 400,000 ordinary shares of 1 each and 100,000 6 per cent preference shares of 1 each. The following information is...
The popularity of a websites dedicated to food and cooking depends on the number of people who visit them and consume the content they host. The file Chicken contains data on 40 chicken-based main...
Answer the following: a. How does standard error of estimate help in selecting an appropriate time series model? b. What is the main demerit of standard errors of estimate that lead to the...
A very good poker player is expected to earn $$1$ per hand in $$100$/$$200$ Texas Holdem. The standard deviation is approximately $$32$. (a) What is the probability a very good poker player...
The total demand for money is equal to the transactions demand plus the asset demand for money. 1. Assume that each dollar held for transactions purposes is spent on the average 4 times per year to...
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
Like most firms in its industry, Culinary Cafe uses a subjective risk assessment tool of its own design. The tool is a simple index by which projects are ranked by level of perceived risk on a scale...
Rimier Corp. forecasts sales of $650,000 for 2020. Assume that the firm has fixed costs of $250,000 and variable costs amounting to 35% of sales. Operating expenses are estimated to include fixed...
Axis Corp. is considering investment in the best of two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $52,500 and generate cash inflows of...
A congressman sent out questionnaires to 10,000 constituents to ask their opinions on a new health-care proposal. A total of 200 questionnaires were returned, and 70% of those responding supported...
Your best friends name. In Exercises 1524, determine whether the data described are qualitative or quantitative.
In a study of the effectiveness of wearing seat belts, a group of people who had survived car accidents in which they had not worn seat belts reported that seat belts would not have helped them. In...

How much money does Alex need to deposit into an account today if the account earns 2.5%

Question:

Expert Answer:

To determine how much money Alex needs to deposit today to reach a goal of 1500 in 18 ... View the full answer

Principles of Managerial Finance

Students also viewed these finance questions