Purchase Solution

Calculating how long before the total funds are available

Not what you're looking for?

Ask Custom Question

A new labor contract has been signed, my company has agreed to make a one-time contribution of Euros 1,000,000 to the construction of a new physical fitness facility for its employees. This amount will be placed in an account earning 2%. When the account grows to Euros 1,850,000, construction will commence. How long must the employees wait until construction of their new gym begins?

Purchase this Solution
Solution Summary

Solution describes the steps to calculate the time employees must wait until the construction of gym begins.

Solution Preview

Present value of contribution=PV=$1,000,000
Future value of contribution=FV=$1,850,000
Rate of ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Calculating Float, Net Float, Cash Discounts

    The supplier offers terms of 3/10, net 50. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? b. What is the discount being offered?

  • Calculating Cash Collections

    Long-term debt is $5,000. Net working capital, other than cash, is $8,500. Fixed assets are $8,000. How much cash does the company have? If current liabilities are $4,000, what are current assets? 2. Calculating Cash Collections.

  • Return on Investment

    Once we add the interest to net income we are accounting for all funds which are left for the providers of capital. We take the after tax interest since interest is tax deductible and so the net interest paid is the after tax interest.

  • analyzing ratios to compare fiscal data

    This ratio should determine the % of intergovernmental funds to total funds (Intergovenmental Revenue/ Total Revenue) 2. It is directing a greater share of its expenditures toward public safety.

  • Financing and Investment Decisions

    During 2009, the Dallas-based company experienced sharp increases in both sales and earnings. Because of this recent growth, Kaka, the company`s treasurer, wants to make sure that available funds are being used to their fullest.

  • Virtual Assist.com's Cost of Capital

    (Hint: Consider only long term sources of capital.) Show how they are computed. b. What are Virtual Assist.com's market value weights of debt, preferred stock, and common stock? Show how they are computed? c.

  • Debt Ratios and EBITDA Coverage

    Suppose we tend to borrow both long and short term funds.

  • Government-wide financial statements

    These statements combine governmental funds' current financial resources with capital assets and long-term obligations. These statements also present total column for the business-type activities of the primary government."

  • Component Costs of Capital and the WACC

    During 2009, the Dallas- based company experienced sharp increases in both sales and earnings. Because of this recent growth, Melissa Jen, the company's treasurer, wants to make sure that available funds are being used to their fullest.

  • Forecasting: Jill's outside capital, Kenney retained earnings

    Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2005?

View More Related Solutions