Calculating interest rates-what annual rate of interest

Assignment Help Financial Management
Reference no: EM131588003

Calculating Interest Rates.

Assume the total cost of a college education will be exist290,000 when your child enters college in 18 years. You presently have exist55,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

Reference no: EM131588003

Questions Cloud

The success of low volatility portfolios : "A Behavioral Finance Explanation For the Success of Low Volatility Portfolios" by Baker et al.
What is firm cost of equity if the current stock price : Maxwell Electromagnetics just paid its first annual dividend of $.18 share. What is firm's cost of equity if the current stock price is $19 a share?
Multinational corporate executive working on annual projet : If you were to become a multinational corporate executive working on an annual project,
Market value balance sheet-dividend price : The market value balance sheet for Tidwell Manufacturing is shown here. What will the ex dividend price be?
Calculating interest rates-what annual rate of interest : What annual rate of interest must you earn on your investment to cover the cost of your child's college education?
Which company do you think is creating more value : Given the following financial information, which company do you think is creating more value? Why?
The desired change in the? firm stock? price : What should the stock dividend be so as to result in the desired change in the? firm's stock? price?
Calculating the? ex-dividend stock? price : what do you expect the? ex-dividend stock price to? be? What about a 23% stock? dividend?
How much will your stock be worth : The stock currently sells for $102 per share. Assuming no taxes, how much will your stock be worth on April 19?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the federal reserve most important function

What is the Federal Reserve's most important function? How does this function affect the nation’s rate of inflation and employment?

  Explaining net present value and future value

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. Give an example of how to use the formulas for NPV..

  Does your current or previous workplace have a formal

Does your current or previous workplace have a formal, established road map for the organization's future? Does your employer have a vision of where it wants to go? If not, why not—what are the barriers to developing a vision? If not, how could it be..

  What is the OCF at the base-case quantity sold

Consider a three-year project with the following information: initial fixed asset investment = $865,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $33.85; variable costs = $22.45; fixed costs = $209,000; ..

  Difference between a value-added and a non-value-added cost

What is the difference between a value-added and a non-value-added cost? Give an example of each.

  What is value of the option to wait

You are considering a project that has been assigned a discount rate of 10 percent. If you start the project today, you will incur an initial cost of $400,000 and will receive cash inflows of $150,000 a year for five years. What is the value of the o..

  Returns on stocks are perfectly negatively correlate

The returns on stocks A and B are perfectly negatively correlated (\rho_{AB} = -1). Stock A has an expected return of 21 % and a standard deviation of return of 40%. Stock B has a standard deviation of return of 20%. The risk-free rate of interest is..

  Advantages of the international trade agreement

Summarized the advantages of the international trade agreement selected and summarized the disadvantages of the international trade agreement selected.

  Investors expect the stock to sell for at the end of year

What do investors expect the stock to sell for at the end of the year?

  Compare current price to sales ratio to historicial ratios

Compare the current price to sales ratio to historicial ratios: Compare the current price to book ratio to historical ratios: Comapre the current price to earnings to historical ratios :

  Calculate the equivalent annual cash flows the project

Allied Products, Inc., is considering a new product launch. The firm expects to have annual operating cash flow of $9.5 million for the next eight years. After the first year, the project can be dismantled and sold for $26.5 million. If the estimates..

  Toyota issues affect the rest of the automobile industry

how did the Toyota issues affect the rest of the automobile industry?

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