User Account

All Pages

Calculate annual rate of return on the initial investment

Assignment Help Accounting Basics
Reference no: EM132634577

Question - How do calculate the annual rate of return on the initial investment and the other investments that earns an annual return of 1.24%?

Rishi Singh has $3,600 to invest. His investment counselor suggests that Rishi should buy an investment that pays no interest but will be worth $4,500 after 7 years.  

a. What average annual rate of return will Rishi earn with this investment?

b. Rishi is considering another investment, of equal risk, that earns an annual return of 1.24%. Which investment should he make, and why?

Reference no: EM132634577

Questions Cloud

Compare and contrast florida voter turnout rate : Compare and contrast Florida's voter turnout rate, party preference, type of primary, registration requirements and early vote rules with one other state.
Developed countries and fast pace of globalization : Given the rapid advancements in technology in developed countries and fast pace of globalization, it is not possible to bridge the global digital divide.
Key role in corporate compliance : Go to the internet and research various project management software programs. Choose three and discuss on each of them.
Identify the current strategy of the organisation : Choose one organisation from the case study (either Walmart, Starbucks, Harvard Business School or Google).
Calculate annual rate of return on the initial investment : Question - How do calculate the annual rate of return on the initial investment and the other investments that earns an annual return of 1.24%
What costs of electric service did management use : Prepare for management an analysis of the costs of the company's own electric generating operations. (Use the step method.)
Life insurance proposal for medical insurance : You are an underwriter for ABC Insurance. You receive a life insurance proposal for medical insurance
How active is your government : Explain two to three roles that modern government plays in the lives of American citizens.
Describe standards related to health information initiatives : Appraise current laws and standards related to health information initiatives. Determine processes for compliance with current laws and standards related.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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