Annual rate implied from the past

Assignment Help Finance Basics
Reference no: EM132540572

2 year(s) ago, Mack invested 6,550 dollars. In 2 year(s) from today, he expects to have 8,490 dollars. If Mack expects to earn the same annual return after 2 year(s) from today as the annual rate implied from the past and expected values given in the problem, then how much does Mack expect to have in 6 years from today?

Reference no: EM132540572

Questions Cloud

What is the semi annual coupon payment : If it has a yield to maturity of 8% what is the semi annual coupon payment
What is the value of a bond that matures : What is the value of a bond that matures in 17 years, makes an annual coupon of 5%, and has a par value of $1,000? Assume a required rate of return of 5.90%.
Relevant arguments for and against decision : As a student of Public Finance, is borrowing good or bad? Justify your position by coming out with all the relevant arguments for and against your decision.
Performance standards specified in agreement : Discuss what should happen when a provider doesn't meet agreed upon service levels or has missed the minimum performance standards specified in the agreement.
Annual rate implied from the past : 2 year(s) ago, Mack invested 6,550 dollars. In 2 year(s) from today, he expects to have 8,490 dollars. If Mack expects to earn the same annual return
What is t the number of years : What is T, the number of years from today that investment B is expected to pay 89,411 dollars? Round your answer to 2 decimal places
While there are many benefits to the use of cryptocurrency : While there are many benefits to the use of cryptocurrency, there is also much skepticism from the general public.
Transformation of risk management : You have been asked to advise the Akawini management team how they should promote and monitor the transformation of risk management in their business.
Expected annual return for investment b : What is R, the expected annual return for investment B? Answer as a rate in decimal format so that 12.34% would be entered as .

Reviews

Write a Review

Finance Basics Questions & Answers

  What would his dollar profit on the rights be

How many rights could Todd buy with his $4,800? Alternatively, how many shares of stock could he buy with the same $4,800 at $66 per share?

  Explain how fras are like swaps and how they are different

How are the payment terms of an FRA different from those of most other interest rate derivatives? Explain how FRAs are like swaps and how they are different?

  Multiculturalism and indigenous social movements

Compare and contrast perspectives on multiculturalism and indigenous social movements in New Zealand and Australia.

  What inflation rate is expected after year 1

Assume that the real risk-free rate is r* = 2% for all maturities and that there are no maturity premiums. If 3-year Treasury notes yield 2 percentage points more than 1-year notes, what inflation rate is expected after Year 1?

  Prepare a brief summary by ratio category

Prepare a brief summary by ratio category highlighting your observations and recommendations for areas for improvement

  Problem regarding the ebit-eps analysis

Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum c..

  Five annual payments-adjusted for inflation

You would like to receive an equivalent of $10,000 in today's dollars at the start of the year for the next five years. Assuming that inflation will average 3% over during that time and you can earn 5% on your investment. How much will you need to..

  Costs of capital for different operating divisions

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divi..

  How many irrs does this project have

Your firm is considering a project that will cost $4.55 million upfront, generate cash flows of $3.5 million per year for three years, and then have a clean

  Terms of the financial functions they perform

(a) Provide a brief overview of Australia's markets in terms of the financial functions they perform.

  Compute seasonal indices for quarter based on cma

A). Compute seasonal indices for each quarter based on a CMA. B). Deseasonalize the data and develop a trend line on the deseasonalize data.

  Show that both portfolios have the same duration

Show that both portfolios have the same duration. - Show that the percentage changes in the values of the two portfolios for a 0.1% per annum increase in yields are the same.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd