You have a savings goal of $4500 in 5 years. You find an investment option with a

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

Question:

You have a savings goal of $4500 in 5 years. You find an investment option with a 6% per annum rate, compounded monthly. How much do you need to invest today in order to reach your savings goal?

Related Book For answer-question

Personal Finance Turning Money into Wealth

ISBN: 978-0134730363

8th edition

Authors: Arthur J. Keown

See More Books

Posted Date: Apr 23, 2024 03:31 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
1. Consider an annuity consisting of three cash flows of $8,000 each. If the interest rate is 6%, what is the present value (today) of the annuity if the first cash flow occurs: a) Today b) One year...
Suppose that a firm is producing in the short run with output given by: Q = 200.5L 2.5L 2 , The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $50 per...
From your experimentation with Figure 26.16, is your blind spot located noseward from your fovea or to the outside of it?
Assess research findings linking financial incentives for tasks that require creativity, problem solving, and memory. What are the strengths of such an approach? What are the limitations? Evaluate...
Southern Services is preparing flexible budget cost estimates for the following items within a range of 16000 to 24000 chargeable hours. Required (a)Prepare a flexible overhead budget for 16000,...
The water and wastewater utility (enterprise) funds of three cities each paid $1 million in casualty insurance premiums. City A is insured by a small independent insurance company. City B is...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with...
Evaluate the cross products A x B and Cx D? (Figure 1) Figure 1 (a) of 1 B A 45 6 (b) Part A What is the magnitude of the cross product A x B? Express your answer using two significant figures. IV ...
Kenmare Resources PLC is a mining company based in the Republic of Ireland and listed on the Irish Stock Exchange. The firm has estimated its weighted average cost of capital to be 11 percent based...
Given the holding-period returns shown here, calculate the average returns and the standard deviations for the Renault Corporation and for the market. MONTH RENAULT CORPORATION MARKET 1 5% 3% 2 7% 4%...
Ebertlang Corporation is a provider of computer software and IT services in two of the largest regions of Eastern Europe. In the past, the companys managers have used a single company-wide cost of...
At the beginning of the year, Stephanie Jo bought a $$40,000$ par value corporate bond with a 7 percent annual coupon rate and a 12-year maturity date. When she bought the bond, it had an expected...
In December 2015, Alpha Technologies PLC issued coupon bonds with par value 100. The coupon rate is 8 percent annually and the bonds will be redeemed at par value in December 2020. What is the price...
Address the issue of extrapolation and using regression equations to forecast far into the future. Explain the dangers of extrapolation from an accuracy standpoint and an ethical viewpoint. Use...
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
Describe how the developed temptation analysis pattern would be stable over time.
List some of the testing patterns that can be applied for testing the temptation stable analysis pattern.
List some of the lessons learnt from the use of the stable analysis pattern for temptation.

You have a savings goal of $4500 in 5 years. You find an investment option with a

Question:

Expert Answer:

To calculate the amount you need to invest today in order to reach your savings goal we can use t... View the full answer

Personal Finance Turning Money into Wealth

Students also viewed these finance questions