Question erick has a 130000 liability it must pay four, Ask an Expert

Finance

Question: Erick has a $130,000 liability it must pay four years from today. The company is opening a savings account so that the entire amount will be available when this debt comes due. The plan is to make an initial deposit today and then deposit an additional $20,000 at the end of each of the four years. The account pays a 4.5 percent rate of return. How much does the firm need to deposit today?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92808587

Have any Question?Write your Review or question?

Related Questions in Basic Finance

What is the difference between promotion and

What is the difference between Promotion and Advertising?

Your father who is 60 plans to retire in 2 years and he

Your father, who is 60, plans to retire in 2 years, and he expects to live independently for 3 years. Suppose your father wants to have real income of $40,000 in today's dollars in each year after he retires. His retirem ...

How may the royal commission inquiring into the activities

How may the Royal Commission inquiring into the activities of financial institutions in Australia affect systematic (market) risk and unsystematic (firm-specific) risk? Explain how items of news reported from the Royal C ...

If a firm has a pe ratio of 15 a yield to maturity of 7 on

If a firm has a P/E ratio of 15, a yield to maturity of 7% on its issued bonds with a current stock price of $50. What is the payback period if the firm distributes all of its earnings as dividends?

Financial decision making case study assignment -assessment

Financial Decision Making Case Study Assignment - Assessment Overview - This is the first of two assessments for this course. For this assessment you will select a listed company from an Aotearoa New Zealand context and/ ...

John walters is comparing the cost of credit to the cash

John Walters is comparing the cost of credit to the cash price of an item. If John makes a down payment of $80 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $685? Cost of cr ...

Polycorp has a debt equity ratio of 065 what is the correct

Polycorp has a debt equity ratio of 0.65. What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V + kd x (1-t) x D/V Provide an answer as a decimal accurate to two decimal places eg 60 ...

Your company is considering a new project that will require

Your Company is considering a new project that will require $18,000 of new equipment at the start of the project. The equipment will have a depreciable life of 5 years and will be depreciated to a book value of $3,000 us ...

What financial institutions do you use or is there a bank

What financial institutions do you use? Or is there a bank or other financial institution that you wish to try out? Describe this financial institution, including the services they offer. What types of savings plans are ...

Assignment question -your group will perform a financial

Assignment Question - Your group will perform a financial analysis of the assigned company. Every group will work on the allocated company Company - The company must be ANZ - Australia and New Zealand Banking Group Limit ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert