Your cousin will enter college one year from now tuition, Ask an Expert

Finance

Your cousin will enter college one year from now. Tuition will be $20,000 annually for 5 years. Your uncle is willing to deposit enough money today, in an account paying 4.9% annual interest, to provide the needed $20,000 tuition payments.

Calculate the amount that the uncle should deposit.

Follow the conventions used in this course for accuracy of intermediate values. Round-off your answer to two decimal places, like this: 12,345.67.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9868779

Have any Question?Write your Review or question?

Related Questions in Basic Finance

The firm has bonds that pay a 5 coupon rate mature in 10

The firm has bonds that pay a 5% coupon rate, mature in 10 years and sell for $975. The preferred stock is selling for $35 and pays a $3.00 dividend. The common stock is selling for $20, just paid a $2.25 dividend and is ...

Risk versus ambiguitya define each of the concepts risk and

Risk versus ambiguity a. Define each of the concepts risk and ambiguity (sometimes called Knightian uncertainty). b. Provide a simple example that incorporates risk in monetary payoffs but not ambiguity. c. Describe a si ...

The reports delivered to those engaged in carrying out or

The reports delivered to those engaged in carrying out or managing the project should be timed to allow control to be exercised before completion of the task in question. Describe exception reports versus special analysi ...

Question - an investment of 83 generates after-tax cash

Question - An investment of $83 generates after-tax cash flows of $42.00 in Year 1, $64.00 in Year 2, and $129.00 in Year 3. The required rate of return is 20 percent. Calculate the net present value?

Time value of money problem - future valuean amount of 160

TIME VALUE OF MONEY Problem - Future Value An amount of $160, 000 was invested on Jan 1, 2011 by a relative of your colleague for 2 years at the annual rate of 9.4% compounded quarterly. But in Jan 1, 2012 the terms of t ...

If sheel inc has 7 percent coupon compounded semiannually

If Sheel Inc. has 7 percent coupon (compounded semiannually) bonds on the market with 10 years to maturity, and the par value of $1,000. AT what price should the bonds be selling for if the YTM is 5%? If the bond had bee ...

1 a stock currently sells for 39 the dividend yield is 28

1. A stock currently sells for $39. The dividend yield is 2.8 percent and the dividend growth rate is 4.1 percent. What is the amount of the dividend that was just paid? 2. Broke Benjamin Co. has a bond outstanding that ...

In capital budgeting for a multinational company the

In capital budgeting for a multinational company, the starting discount rate to which risks stemming from foreign exchange and political factors can be added, and from which benefits reflecting the parent's lower capital ...

Assignment -the aim of the first assessment item is

Assignment - The aim of the first assessment item is exploratory, showing in-depth understanding and comprehension of a given topic and key concepts. It aims to test your ability to digest and explain complex issues and ...

What is the corporate bond market and what are key

What is the Corporate Bond Market, and what are key differences between the bond and stock markets? What is A Government Bond Market?

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