Discuss about the goal of purchasing a small sailboat

Reference no: EM132001607

Question: Misty needs to have $12,000 at the end of 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave the money untouched for 4 years until it grows to $12,000, but she wonders what sort of investment return she will need to earn to reach her goal. Use your calculator or spreadsheet to figure out the annually compounded rate of return needed if she can invest $8,200 today.

The annually compounded rate of return Misty needs to earn to reach her goal is []. (Round to two decimal places.)

Reference no: EM132001607

Questions Cloud

What is the expected return of stock after transaction : What is the expected return of the stock after this? transaction, round to two decimal places?

What level of sales could mitchell have obtained : What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar.

Wacc increase and irr decrease as capital budget increases : Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends?

What is the average balance sheet amount : If the company sells 1,370 forecasts every month at a price of $2,470 each, what is its average balance sheet amount in accounts receivable?

Discuss about the goal of purchasing a small sailboat : Misty needs to have $12,000 at the end of 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave.

What is the change in the expected return on the portfolio : What is the tradeoff between investing in ABC and DEF (i.e., if we increase the weight in DEF by 1%, what is the change in the expected return on the portfolio)

What does this theorem allow that traditional statistics : What does this theorem allow that traditional statistics do not? What are some prerequisites for using Bayesian statistics?

What is the most appropriate ethical framework : Evaluate Pogges claim that the rich countries of the world violate the human rights of the poor by imposing a poverty causing international order on them

Observations with the interpretation of the observations : A fundamental pitfall in qualitative research is to confuse the actual observations with the interpretation of the observations.

User Account

All Pages