FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your friend is planning to invest $5,000 at the end of every quarter in an investment fund over a ten-year period. The fund is expected

Your friend is planning to invest $5,000 at the end of every quarter in an investment fund over a ten-year period. The fund is expected to earn an interest rate of 8% p.a. The first contribution will be made at the end of the first quarter. If the interest rate earned is compounded on a monthly basis, calculate the present value of her investment plan.

Step by Step Solution

★★★★★

3.40 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

We can use the formula for the present value of an ordinary ann... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money into Wealth

Personal Finance Turning Money into Wealth

Authors: Arthur J. Keown

8th edition

134730364, 978-0134730363

More Books

Students also viewed these Finance questions

Question

★★★★★
An object of mass 4.15 kg undergoes an acceleration of 3.5 m/s^2 for a period of 7.0 seconds. It then undergoes an acceleration of -4.2 m/s^2 for a period of 18.0 seconds. If the initial velocity of...

Answered: 1 week ago

Question

★★★★★
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 1 week ago

Question

★★★★★
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 1 week ago

Question

★★★★★
Why is an objects internal data usually hidden from outside code?

Answered: 1 week ago

Question

★★★★★
Why are property rights so important in creating wealth?

Answered: 1 week ago

Question

★★★★★
Finding the most profitable price-quantity combination. The Giants Company is introducing a new product called Barry Dolls and must decide what price should be set. An estimated demand schedule for...

Answered: 1 week ago

Question

★★★★★
If I were my instructor, how would I feel about having a student like me? Would I think I showed a lot of effort? A lot of interest? Curiosity? Discipline? Concern for others in class?

Answered: 1 week ago

Question

★★★★★
A paper in the Journal of the Association of Asphalt Paving Technologists (Vol. 59, 1990) describes an experiment to determine the effect of air voids on percentage retained strength of asphalt. For...

Answered: 1 week ago

Question

★★★★★
The Dimples Golf Ball, Co. has paid a regular dividend of exist0.20 quarterly for the last three years. The company has 2 million shares outstanding. Over the next year the company will have to spend...

Answered: 1 week ago

Question

★★★★★
The Hickory Cabinet and Furniture Company produces sofas, tables, and chairs at its plant in Greensboro, North Carolina. The plant uses three main resources to make furniturewood, upholstery, and...

Answered: 1 week ago

Question

★★★★★
Exercise 7 - 1 1 ( Algo ) Second - Stage Allocation and Margin Calculations [ LO 7 - 4 , LO 7 - 5 ] Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries....

Answered: 1 week ago

Question

★★★★★
Michelle Sargol offers to pay $9,000 for a particular car located on John Weber's car lot. Weber accepts Sargol's offer and promises to transfer the title next week, at which time Sargol will pay for...

Answered: 1 week ago

Question

★★★★★
Recent research at the Wharton School suggests that harmonious bargaining Group of answer choices can bring about good long-term results. often backfires on the side that initiated harmonious...

Answered: 1 week ago

Question

★★★★★
Can the astronaut simply shake one tank and then the other two find the full tank? Why or why not?

Answered: 1 week ago

Question

★★★★★
12. Eveline is reading a news article and comes across a shocking statistic in an online news article that says, "87% of all frogs are poisonous if you lick them." This statistic doesn't sound right,...

Answered: 1 week ago

Question

★★★★★
Given a set S of integers, an integer total, and a non-negative integer budget, the SubsetSum Decision problem is to report whether or not there is a subset of S, containing at most budget elements,...

Answered: 1 week ago

Question

★★★★★
complete all parts to the question Exercise 16-18 (Algo) Change in tax rates; calculate taxable income (L016-2,16-6] Arnold Industries has pretax accounting income of $104 million for the year ended...

Answered: 1 week ago

Question

★★★★★
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...

Answered: 1 week ago

Question

★★★★★
1. Assuming Doug has another account set aside for emergencies, how much can he withdraw on a monthly basis to supplement his retirement annuity if his investments return 5 percent annually and he...

Answered: 1 week ago

Question

★★★★★
Assuming a 1-year money market account investment at 1.5 percent (APY), a 2.5 percent inflation rate, a 25 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate...

Answered: 1 week ago

Question

★★★★★
Your mother just received a $250,000 inheritance. If she invests her money in a diversified equity portfolio returning 8 percent per year, approximately how long will it take her to become a...

Answered: 1 week ago

Question

★★★★★
Damage to the brains right hemisphere is most likely to reduce a persons ability to recite the alphabet rapidly. make inferences. understand verbal instructions. solve arithmetic problems.

Answered: 1 week ago

Question

★★★★★
During the NREM-1 sleep stage, a person is most likely to experience deep sleep. hallucinations. night terrors or nightmares. rapid eye movements.

Answered: 1 week ago

Question

★★★★★
The neural structure that most directly regulates eating, drinking, and body temperature is the endocrine system. hypothalamus. hippocampus. amygdala.

Answered: 1 week ago

Previous Question Next Question