John has taken $35,000 loan this year. In order to pay it back, John plans to set
Question:
John has taken $35,000 loan this year. In order to pay it back, John plans to set aside $6,500 a year, at the end of each of the next two years (year 1 and year 2), then $7,500 a year in the following two years (year 3 and year 4), and increase his annual savings to $8,500 in year 5 and year 6. His savings will earn 5% per annum. All the money will be withdrawn at the end of year 7. What would be the accumulated future value of this savings? Will this amount be enough to pay off his loan? Assume that interest rate is paid annually.
What price would you expect to pay for a stock with 14% required rate of return, 5% rate of dividend growth, and an expected annual dividend of $1.50 which will be paid tomorrow? What will be the price today if the expected dividend and required return both decrease by 2.5%?
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver