Question

In: Finance

A student is trying to value an internship opportunity for theupcoming summer. The internship will...

A student is trying to value an internship opportunity for the upcoming summer. The internship will last three months and pay her $2,336.00 at the end of each month. She will also get a “signing” bonus at the beginning of the internship for $650.00. If the student can invest this money in an account that pays 5.64% APR with monthly compounding, what is the value of her account at the end of her internship?

Solutions

Expert Solution

Monthly interest rate = 5.64%/12 = 0.0047

Part 1: The future value of monthly payments

Part 2: The future value of signing bonus

FV = PV * (1 + r)^n

FV = 650 * (1 + 0.0047)^3

FV = 650 * 1.0141663738

FV = $659.20814297

Add results from Part 1 and Part 2

The value of her account at the end of her internship = 7,040.9892007489 + 659.20814297

The value of her account at the end of her internship = $7,700.1973437189

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A student is trying to value an internship opportunity for the upcoming summer. The internship will...
A student is trying to value an internship opportunity for the upcoming summer. The internship will last three months and pay her $2,271.00 at the end of each month. She will also get a “signing” bonus at the beginning of the internship for $850.00. If the student can invest this money in an account that pays 5.04% APR with monthly compounding, what is the value of her account at the end of her internship? Answer format: Currency: Round to: 2...
A student is trying to value an internship opportunity for the upcoming summer. The internship will...
A student is trying to value an internship opportunity for the upcoming summer. The internship will last three months and pay her $2,147.00 at the end of each month. She will also get a “signing” bonus at the beginning of the internship for $585.00. If the student values this opportunity with a 3.72% APR with monthly compounding, find the value to her today.
Recall a time in a co-op placement, a summer job, an internship, a student club, a...
Recall a time in a co-op placement, a summer job, an internship, a student club, a student team project, etc. when your values conflicted with what you were expected to do in a particular, nontrivial decision, and you spoke up and acted to resolve the conflict. Consider the following and write down your thoughts: What did you do, and what was the impact? What motivated you to speak up and act? Identify the values that conflicted with what you were...
A, is a financial institution such as a VISA credit card company for a summer internship...
A, is a financial institution such as a VISA credit card company for a summer internship a good idea and how does this internship directly or indirectly affect career goals for economics finance track second-year student? max 300 words 2. can someone also help me on this question for financial instructions, What do you perceive as being the most challenging personal or professional aspect of your summer experience? How do you plan to overcome this/these challenge/s? up to 300 words...
You apply for a summer internship with a startup company, and your chance of getting an...
You apply for a summer internship with a startup company, and your chance of getting an offer is 80% if you well prepare for an interview. Otherwise, you will only get 20% chance for an offer. Suppose that the likelihood of your preparation going well is 30%. What is the probability that you get the internship?
On the first day of your summer internship, you've been assigned to work with the Chief...
On the first day of your summer internship, you've been assigned to work with the Chief Financial Officer (CFO) of SanBlas Jewels Inc. Not knowing how well trained you are, the CFO has decided to test your understanding of interest rates. Specifically, she asks you to provide a reasonable estimate of the nominal interest rate for a new issue of Aaa-rated bonds to be offered by SanBlas Jewels Inc. The final format that the chief financial officer of SanBlas Jewels...
you landed a summer internship with a company that processes dental insurance claims for insurance companies....
you landed a summer internship with a company that processes dental insurance claims for insurance companies. The company receives the insurance claims from dental offices, achieves authorization from the correct insurance company, and sends payment checks. You do not deal with dental customers directly; instead, you work with insurance companies on one side and dental offices on the other. After two months with the company, you think a number of frauds may be occurring, and you feel the best way...
You have an internship this summer for the Cook County Department of Public Health. Your job...
You have an internship this summer for the Cook County Department of Public Health. Your job is to work with the West Nile Virus group. You need to identify possible reservoirs, vectors, and determine how many people have been infected this year. Discuss which three types of organisms you will be examining and why.
You are trying to value the following investment opportunity: The investment will cost you $24,197 today....
You are trying to value the following investment opportunity: The investment will cost you $24,197 today. In exchange for your investment, you will receive monthly cash payments of $5,014 for 10 months. The first payment will occur at the end of the first month. The applicable effective annual interest rate for this investment opportunity is 8%. Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).
A random sample of 75 students revealed 0.25 had acquired an internship for summer 2020 before...
A random sample of 75 students revealed 0.25 had acquired an internship for summer 2020 before February 2020. If an associated confidence interval started at 0.152 and ended at 0.348, what was the level of confidence? Group of answer choices a) 90 b)80 c)99 d)95 For a t distribution with n = 19, find the probability for the following region: To the left of +2.5524 a)0.51 b)0.49 c)0.99 d)0.91
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT