Question: Hal Thomas wants to establish a savings fund from which a community organization could draw $800 a year for 20 years. If the account earns

Hal Thomas wants to establish a savings fund from which a community organization could draw $800 a year for 20 years. If the account earns 6 percent, what amount would he have to deposit now to achieve this goal?

Step by Step Solution

★★★★★

3.63 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

800... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1310-B-C-F-P-V(647).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Mist Company acquired 65 percent of Blank Corporation's voting common stock on June 20, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 35...

A newly established firm wants to establish a pension plan for its employees. The firm hires you to prepare a report comparing a defined benefit pension plan with a defined contribution pension plan....

A wealthy alumnus wants to establish a scholarship that will pay $2,000 at the beginning of every school year. What amount is required to establish the scholarship if money can earn 7% compounded...

A major city in the northeast wants to establish a central transportation station from which visitors can ride buses to four historic landmarks. The city is arranged in a grid, or block, structure...

10. Calculating Present Value of a Savings Fund. Hal Thomas wants to establish a savings fund from which a community organization could draw $800 a year for 20 years. If the account earns 3 percent,...

please help me. thank you. Use future value and present value calculations to determine the following: (a) The future value of a $800 savings deposit after eight years at an annual interest rate of 6...

Calculating Present Value of a Savings Fund. Hal Thomas wants to establish a savings fund from which a community organization could draw $1,000 a year for 20 years. If the account earns 2 percent,...

time value of Money Assignment.pdfUsing the table(s) needed in Appendix B from the back of your book, please answer each of the following questions:1) What is the relationship between the time value...

1- Bill and Sally Kaplan have an annual spending plan that amounts to $39,500. If inflation is 3 percent a year for the next three years, what amount will the Kaplans need for their living expenses...

Hal Thomas wants to establish a savings fund from which a community organization could draw $1,000 a year for 20 years. If the account earns 2 percent, what amount would he have to deposit now to...

Hal Thomas wants to establish a savings fund from which a community organization could draw $890 a year for 20 years. If the account earns 3 percent, what amount would he have to deposit now to...

Castillo Company reported these figures for 2014 and 2013: Requirements 1. Compute Castillo Company's earnings per share for 2014. Assume the company paid the minimum preferred dividend during 2014....

Tic-Tac Homes has had the following balance sheet statements the past four years (in thousands): Using index analysis, what are the major problems in the company's financial condition? 20X1 20X2 20X3...

Locate the Treasury bond in Figure 8 . 5 maturing in February 2 0 4 0 . Assume a par value of \ ( \ $ 1 0 , 0 0 0 \ ) . What is its coupon rate? Note: Enter your answer as a percent rounded to 3...

A certain element that does not react with oxygen has in the nuclei of its atoms more protons than sulfur and less than calcium. What is the symbol of the element, what is its mass number and to...

CALCULATE THE CONCENTRATION (% m / v) OF A SOLUTION PREPARED BY DISSOLVING 3 g OF MAGNESIUM SULFATE IN WATER, UP TO 80 ml OF SOLUTION.

Use the standard normal table to find the z-score that corresponds to the given percentile. If the area is not in the table, use the entry closest to the area. If the area is halfway between two...

The per capita energy consumption level (in kilowatt-hours) in a certain country for a recent year can be approximated by a normal distribution, as shown in the figure. (a) What consumption level...

1. *5.5 The finding that the average real price of abor tions has remained relatively constant over the past 25 years suggests that the supply curve is horizontal. Medoff (1997) estimated that the...

Calculate the effective annual cost of a one-year $2-million operating line of credit. The firm borrowed $1.2 million for the first five months of the year and reduced the loan amount to $500,000 for...

What is the effective annual cost if a firm issues $10 million of 180-day BAs at a quoted rate of 6.5 percent, and the bank charges it a 0.5 percent stamping fee? Compare the effective annual cost of...

State four main motives firms have to hold cash.

A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? A portfolio consisting of about...

2. Salima became a Certified Public Accountant in 2002. After working as a staff auditor and accountant for other companies, she was hired as an auditor by Moore Corp. in 2003. When she was hired,...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par...