Bus 650 Week 2 Dq 1 Initial Investme

Check this A+ tutorial guideline at

http://www.assignmentclick.com/BUS-650-ASH/bus-650-week-2-dq-1-initial-investment

a) Think of something you want or need for which you currently do not have the funds. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, etc. Select something which costs somewhere between \$2,000 and \$50,000. Use the “Present Value Formula”, which computes how much money you need to start with now to achieve the desired monetary goal. Assume you will find an investment that promises somewhere between 5% and 10% interest on your money (you choose the rate) and pretend you want to purchase your desired item in 12 years. (Remember that the higher the return, usually the riskier the investment, so think carefully before deciding on the interest rate.) How much do you need to invest today to reach that desired amount 12 years from now?
b) You wish to leave an endowment for your heirs that goes into effect 50 years from today. You don’t want to be forgotten after you pass so you wish to leave an endowment that will pay for a grand soirée yearly and forever. What amount would you like spent yearly to fund this grand party? How much money do you have to leave to your heirs 50 years from now assuming that will compound at 6% interest? Assuming that you have not invested anything today, how much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6% monthly compounding rate?

For more classes visit
http://www.assignmentclick.com

Similar Essays

• Bus 650 Week 4
STEPHENSON REAL ESTATE RECAPITALIZATION Francisco Morales BUS 650 Dr. Hollman 12 / 17 /12 1. If Stephenson wishes to maximize its total market value, would...
• Bus 650 Week 2
072 | 51,514,196 | 77,211,638 | 103,054,636 | INITIAL INVESTMENT | 11,610,000 | 15,157,500 | 18,221,250 | 19 ... asked of us this week sounds so simple When...
• Bus 650 Week 1 Assignment
MBA Decision Quent Mikeal BUS650: Managerial Finance Instructor: Rick Kwan February 22, 2013...
• Week 6 Bus 650
Week Six Assignment Week Six Managerial Finance Jason Campbell Wayne Hollman BUS 650 ... lost out on sales on the initial order so tried to compensate by...
• Week 5 Bus 650
Running head: Week Five Assignment Week Five Managerial Finance Jason Campbell Wayne Hollman BUS 650 December 17, 2012 Complete Chapter 13 Closing...