Appreciating at the same average annual rate

Assignment Help Financial Management

Reference no: EM132004220

1. Your family owns a velociraptor skeleton that is currently valued at $97.4 thousand. Your grandfather, being an avid fossil collector, bought it 50 years ago for $23.3 thousand. If the skeleton keeps appreciating at the same average annual rate, what would be its value 25 years from now?

2. You estimate that you will need $860 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity. To achieve your financial goal, you want to make three equal-sized deposits into an account paying a fixed annual rate of 7.02%. The first deposit will be made right now, the second 10 years from now, and the third 20 years from now. What is the size of each deposit you need to make in order to partake of future cybernetic goodness? (Hint: draw this out on a timeline.)

3. 6 years ago you started making annual deposits of $420 into an account paying 8% annual return. You continue to make these deposits every year without fail. If you keep doing this every year for the next 5 years, how much money will you have in 5 years?

4. Last year, you earned a rate of return of 8.27 percent on your bond investments. During that time, the inflation rate was 2.6 percent. What was your real rate of return?Use the exact relationship between real and nominal rates. Enter answer in percents, accurate to two decimal places.

Reference no: EM132004220

Questions Cloud

How does james baldwin reconcile being black in america : What are the differences between the racial term "Black" and the ethnic term "African American"? Are all Blacks, African American? Vice versa?

Compute abbott tax liability : Abbott Corporation has book income before federal income tax of $380,000. Compute Abbott's tax liability. Compute Abbott's taxable income

Explain the logic of your analysis in given issue : Mr. Joseph has identified five different companies in which he is interested in investing, however, he has concerns over the economy and wants to invest.

Qualitative data interpretation and analysis keeping : What is Qualitative Data Interpretation and Analysis keeping in view the Issues of Reflexivity, Validity, Reliability and Generalizability, Triangulation in Ana

Appreciating at the same average annual rate : If the skeleton keeps appreciating at the same average annual rate, what would be its value 25 years from now?

Demonstrating critical thinking skills in everyday life : In this weekly assignment for the remainder of this course you will continue to fine-tune your skills in reflective practice. In this written assignment.

Aspects of the character behavior : Discuss a prevalent character arc from any reference medium and consider what aspects of the character's behavior and emotions are meaningful and why?

What is the total borrowing cost to the firm : The firm must also pay a marketability risk premium of 0.80 percent. What is the total borrowing cost to the firm?

Interest compounds semiannually on coupon paying bonds : what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds.

User Account

All Pages