A firm wishes to establish a fund which, in 10 years, will accumulate to $10,000,000. The fund will be used to repay an outstanding bond issue. The firm plans to make deposits, which will earn 12 percent, to this fund at the end of each of the 10 years prior to maturity of the bond. How large must these deposits be to accumulate to $10,000,000?
What will be an ideal response?
Financial Calculator: PV = 0, FV = 10,000,000, N = 10, I = 12, CPT PMT: $569,833.04
You might also like to view...
In order to be prepared for a potential disaster, businesses should ________.
A. make customers responsible for their contingency plans B. avoid storing vital information and data on the cloud C. create a preparedness program for the business D. wait until a natural disaster strikes to see how employees react
Explain the debt ratio and its use in analyzing a company's financial condition.
What will be an ideal response?
Sally always drives with her seat belt on. She knows that if she does not wear it, she will be pulled over. This is an example of ______.
a. positive reinforcement b. avoidance reinforcement c. punishment reinforcement d. extinction reinforcement
Which of the following is a potential pitfall of self-disclosure?
A) Efforts might be seen as inappropriate B) Efforts might be seen as manipulative C) People might react defensively D) All of the above