Question

You plan to deposit $2,300 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today.

  1. What amount will be in your account at the end of 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Other

Related Finance Q&A

Find answers to questions asked by students like you.

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 ...

A: Both future value and present value of a series of payments needs to be calculated.Please refer to t...

Q: please show all work and state answer clearly

A: Present value of the debt is $42000 which needs to be repaid in monthly instalment over a period of ...

Q: If $18,000 is invested at 2.5% for 20 years, find the future value if the interest is compounded the...

A: Compute the future value:The future value if the interest is compounded continuously is $29,676.98 a...

Q: Risk Premium If the annual return on the S&P 500 Index was 10.20 percent. The annual T-bill yiel...

A: Risk Premium: It characterizes to the additional return over the risk free rate that an investor nee...

Q: I did this for hw I just wanted to see if my answers where correct and if not can show me what the r...

A: Net working capital (NWC) is the difference in the company’s current assets (CA) and current liabili...

Q: Hi, I answered part A and my answer was 2.60%. Is that correct? Also, I need help with answering que...

A: 15) Dollar weighted return is the Internal Rate of Return of the cash flows. It is the return at whi...

Q: O 1 75% AT&T LTE 11:52 AM Exit 26 4. Conglomerate Inc. is trading at $80/share, and is about to anno...

A: Calculation of Maximum Exchange Ratio:The maximum exchange ratio is close to 1.43.Excel Spreadsheet:

Q: our firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would increas...

A: NPV of the tractor when the useful life is 5 years:

Q: Stock XYZ has a beta of 0.50 and Stock ABC has beta of 1.00. According to CAPM, Stock XYZ has a A. h...

A: The capital asset pricing model describes the risk and return relationship for a stock. The model ca...

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first ...

A: The machine has an economic life of 7 years.The MARR is 16%.The below table shows the calculation of...

Q: Example • A farmer sells two soybean futures contracts at a price of $8.91 per bushel. The spot pric...

A: 1-2Calculation of Proceeds from Sale:1. The proceeds from sale is $125,300.2. The proceeds from sale...

Q: A share of common just paid a dividend of $1.00. If the expected long-run growth rate for this stock...

A: The formula to calculate value of stock is given below:

Q: Problem 13-13 PI (LG13-6) Compute the PI statistic for Project Z if the appropriate cost of capital...

A: Calculation of Profitability Index: The profitability index is 1.36.Excel Spreadsheet:

Q: Myra bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase pri...

A: Computation:Hence, the total to Myra is $163,098.Answer: Option A

Q: The current spot rate for the $ (US Dollar) to ¥ (Yen) exchange rate is 120.   General Electric plan...

A: Spot Rate = 120Borrowing Rates:Interest Rate at Home Currency = 0.5% or 0.005Interest Rate at Foreig...

Q: Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a...

A: The dividend for current year is calculated below:

Q: Abby Mia wants to know how much must be deposited in her local bank today so that she will receive y...

A: The formula to compute present value is as follows:

Q: How is the intrinsic value of the call option impacted as the stock price changes? How is the time v...

A: 1) Intrinsic value of a call option for a trader is the current value of the option. It is the amoun...

Q: The city isrequired to make regular payments every 3 months into a sinking fund paying 5.4% compound...

A: A)The interest rate is 5.4% compounded quarterly.There would be 40 quarters in 10 years.The cost of ...

Q: ABC, Inc. purchased an equipment at time=0 for $135,077. The shipping and installation costs were $3...

A: Calculation of Cash Flow in Year 4:The cash flow in year 4 is $123,123.96.Excel Spreadsheet:

Q: (a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of ...

A: Formula:

Q: Thickburger's net fixed assets = $200,000, total assets = $400,000, inventory =$50,000 and current l...

A: Calculation of Current Ratio and Quick Ratio:The current ratio is 4 and quick ratio is 3.50.Excel Sp...

Q: IP2-3 Asset Management and Profitability Ratios You have the following information on Els' Putters, ...

A: Current assets can be calculated with the help of relation of sales to working capital.To calculate ...

Q: What are the implications of these calculations? In other words, based on each of the calculations, ...

A: Net Present Value of the project is the sum of the present value of all the cash flows. This takes i...

Q: JP Morgan currently trades at 136.81 and pays a dividend of $3.60. The firm’s EPS are $10.16. The re...

A: Given that the current share price is $136.81, dividend payment is $3.60 and the eps or earnings per...

Q: Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the ...

A: Return for individual stock can be calculated with the help of below formula,

Q: Suppose a firm has a retention ratio of 65 percent and net income of $9.9 million. How much does it ...

A: Calculation of dividend:Hence, the dividend is $3,465,000.

Q: Determine the accumulated value in 10 years of $100 invested today at an interest rateof 7 percent.

A: Future Value of $100 invested today at an interest rate of 7% for 10 years can be calculated using s...

Q: Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year du...

A: Calculation of Projected Dividends:The projected dividends are $3.12.Since there is no dividends pro...

Q: Balance Sheet 3-Dudes, Inc. Liabilities & Owners' Equity: Assets: 2021 2022 $22,000 $18,000 $26,000 ...

A: 6.2022Current Assets = $292,000Inventories = $27,000Current Liabilities = $76,000 Calculation of Qui...

Q: Calculate the NPV, IRR, and payback period for the acquisition and indicate what you think Atlantic ...

A: Calculate the net present value (NPV) as follows:

Q: Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax r...

A: Calculation of Interest Expense:The interest expense is $1,000,000.Excel Spreadsheet:

Q: Lannister Manufacturing has a target debt-equity ratio of 0.62. Its cost of equity is 18 percent, an...

A: Target debt to equity = 0.62Therefore,Debt to total asset (D/V) = 0.62/1.062 = 0.583804143126177Equi...

Q: Rocor is considering the implementation of a lockbox collection system for its mid-western and weste...

A: Given that the annual sales is $560 million

Q: You have been given the following return information for a mutual fund, the market index, and the ri...

A: Calculation of Sharpe and Treynor ratio using excel is as follows:

Q: I made a portfolio on stock track and my sharoe ratio is 3.29, alpha is -2.74, and my beta is 0.86. ...

A: Sharpe Ratio: Sharpe ratio is a method to evaluate the risk-adjusted return. It helps the investors ...

Q: Your investment portfolio consists of $15,000 invested in only one stock—Amazon. Suppose the risk-fr...

A: The worth of Amazon stock to be sold is $15,000. This is because the value of Amazon stock today is ...

Q: (Calculating the ex-dividend stock price) Kingwood Corporation has a stock price of $115.62 per shar...

A: a) Ex-dividend date prices will fall by the amount of dividend paid.

Q: Calculate the cost of capital Assuming that there is an unlevered firm and a levered firm. The basic...

A: The required values are mentioned in below table:

Q: What is the difference between NPV and IRR?  Which one would you choose for evaluating a potential i...

A: Net present value (NPV) and Internal rate of return (IRR) are the capital budgeting method by which ...

Q: Weighted Average Shares Question On January 1, 2020, ABC Corporation had 990,000 shares of common st...

A: Weighted average number of shares is used to adjust any changes in the number of outstanding shares ...

Q: Question 6a A music company is considering creating the world's largest piano. Cost and cash flow de...

A: PV of all yearly cash flows, NPV and IRR is calculated as below:

Q: Loki, Inc. and Thor, Inc. have entered into a stock-swap merger agreement whereby Loki will pay a 39...

A: Calculation of Exchange Ratio:The exchange ratio is 1.14.Excel Spreadsheet:

Q: please show all work and state answer clearly

A: To solve the question, we need to use the concept of time value of money. According to time value of...

Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by mak...

A: Calculation of Monthly Deposits:The monthly deposits are $301.66.Excel Spreadsheet:

Q: TransITRI is a transportation company with a recent need of a new construction equipment at a first ...

A: The calculation of different cashflows for different years is shown in below table:

Q: Med-Ready Inc. has a leading P/E of 12.48 and a 5-year consensus growth rate forecast of 7.04%. The ...

A: Calculation of Firm’s PEG:The firm’s PEG is 1.77.

Q: please help :( :(

A: a.Dividend = $3.20Growth Rate = 6% or 0.06Required Return = 12% or 0.12 The calculation of the curre...