Assignment_4 - FIN254 Assignment#4(Based on Chapter 6...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN254: Assignment#4 (Based on Chapter 6) FIN254: Assignment#4 (Based on Chapter 6) 1. Suppose Mr. Raju wants to be a millionaire in 30 years. How much does he have to save each month if he can earn 12% annual return? How much does he have to save each month if he starts saving ten years from now? Twenty years from now? 2. Suppose, Mercantile bank is offering you to quadruple your money in twenty months. What rate of return are you being offered per quarter? 3. You always purchase lottery tickets thinking ‘JODI LAIGGA JAY’. Finally one day, you won a lottery. You will receive $500,000 in one year. You will then receive payments for 30 years, which will increase 5% per year. If the required rate is 10%, what is the present value of your winnings? 4. One day you woke up from sleep and thought “Hmm, wish I could have $30,000 with me! I could do so much shopping!” Then you thought you could make monthly payments of $300 starting from the end of this month into an account that pays 12% interest compounded monthly. Then you found out the number of payments would be
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern