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Erika and Katherine have both been given $30000 by their grandparents today on their 25th birthdays. They want to save for their future and have aspirations of one day being millionaires. Each woman plans to make annual contributions on her birthday, beginning next year. Erika and Katherine have each opened investment accounts at the First National Bank and Second National Bank, respectively, and they expect to earn nominal returns of 8 and 9 percent, respectively. Erika has already decided to deposit $5000 each year into her investment account, while Katherine is unsure of the amount she will deposit annually.

a. How long will it take Erika before she reaches her investment goal of $1 million?
b. If Katherine decides to make the same annual contributions as Erika, how much sooner would she reach the investment goal?
c. Suppose Katherine was interested in reaching the investment goal at the same time as Erika. What is the minimum monthly contribution she could make in order to reach $1 million as the same time as Erika?

The numerical answer for parts a, b and c are 31.72years, 2.56 years and $3368 respectively. As I am a first learner in Financial, please show all the required steps and formulas in your answer and please make your answer as soon as possible because it is urgent for me. Thanks!
Asked Jan 28, 2011
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Answered Jun 07, 2011
Eco Tyre Ltd. (ETL) - incorporated in year 2003 and entered into automobile tyre manufacturing business by introducing a new tire manufacturing technology. Over the years, ETL has been recognized as a tyre market leader. But, now a day, ETL is facing hard time due ineffective control of its working capital items.

Following data has been developed from its comparative balance sheets:

Ratio FY 2010 FY 2011
Current Ratio 0.60 Times 0.79 Times
Quick Ratio 0.45 Times 0.61 Times
Return on Asset 9.7% 12.5%
Inventory Turnover 28 Times 15 Times
Avg. Collection Period 13 Days 24 Days
Short-term Debt 4 million 4 million
Total Asset Turnover Ratio 2 Times 5 Times
Credit Sales to Cash Sales Ratio 0.45 Times 0.67 Times

Being a financial analyst, do you think the liquidity of a company is satisfactory?
Support your answer with logical reasoning.

Answered Oct 23, 2012
Urgently Need on 24 Oct 2012
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Answered Dec 25, 2014
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Answered Jan 19, 2015

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