Calculating interest rates

Assignment Help Financial Management
Reference no: EM131958429

Calculating Interest Rates 

Assume the total cost of a college education will be $250,000 when your child enters college in 17 years. You presently have $56,000 to invest.

What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Annual rate of interest %

Hints

References

eBook & Resources

Reference no: EM131958429

Questions Cloud

What is the books argument-thesis-main point : What is the book's argument/thesis/main point? What sources did the author use to write the monograph and make their argument?
Forward rate if the expectation hypothesis holds : A one year Treasury bill offers a 8% yield to maturity. What is the expected 2 year forward rate if the expectation hypothesis holds?
Analyse an organisational leadership issue : Submit a reflective essay incorporating their personal philosophy of leadership and analyse an organisational leadership issue
What methods african americans employ to overcome obstacle : What methods did African Americans employ to overcome this obstacle? Defend your views by citing information from primary academic or government sources.
Calculating interest rates : What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
Examine the legacy of the us supreme court decision : For the final paragraph, examine the legacy of the US Supreme Court decision, Moore v. Dempsey. More about this in class.
Discuss at least two individual rights for a patient : Discuss at least two (2) individual rights for a patient regarding EMR and their healthcare information. Next, describe three (3) basic safeguards.
Simple interest versus compound interest : First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually.
Analyze primary issues with patient confidentiality : From the scenario, analyze the primary problems associated with information management, and analyze the primary issues associated with patient confidentiality.

Reviews

Write a Review

Financial Management Questions & Answers

  The historical return on equity

Juggernaut Satellite Corporation earned $18 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year di..

  How many years will it take to exhaust him funds

How many years will it take to exhaust him funds, i.e., run the account down to zero?

  Calculating cost of debt

What is the company's pretax cost of debt? If the tax rate is 38 percent, what is the aftertax cost of debt?

  Annual rate of return will rishi earn with this investment

What annual rate of return will Rishi earn with this investment? Which investment should he make and why?

  Although bill has nothing saved for retirement

Although Bill has nothing saved for retirement so far, he has determined that he will need to have $856,000 in the account when he retires.

  Calculate operating breakeven point in units

Calculate the operating breakeven point in units. Use the degree of operating leverage? (DOL) formula to calculate DOL.

  Estimate venture required rate of return based

Estimate a venture’s required rate of return based on the following information: current year’s net income = $20,000;

  Reinvestment rate assumption of internal rate of return

The Modified Internal Rate of Return measure was created to eliminate the unrealistic reinvestment rate assumption of the Internal Rate of Return.

  Variable cost per unit have on the operating cash flow

What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

  About the cost of common equity

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $25.50 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the ..

  Risky asset with expected return

Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent.

  Suppose country has persistent current account surplus

Suppose a country has persistent current account surplus. Which one of the following would cause country's currency to depreciate?

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