Interest rate on single payment

Assignment Help Financial Management
Reference no: EM131072635

Interest Rate on a Single Payment

Your parents will retire in 16 years. They currently have $260,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

Reference no: EM131072635

Questions Cloud

Future value of single payment : Future Value of a Single Payment. If you deposit $6,000 in a bank account that pays 8.3% interest annually, how much would be in your account after 5 years? Round your answer to the nearest cent.
Are you willing to sign-off on that prospectus as being true : HI6026 AUDITING AND ASSURANCE SERVICES - Discuss the steps that you need to consider before accepting to do an audit of the KGC Ltd. mine in PNG and should your audit firm accept the role of doing an audit of the KGC Ltd. mine in PNG?
What problems does socrates uncover with this definition : What point does Socrates make about carrying and being carried, seeing and being seen, and loving and being loved?Why does Socrates think that the god-beloved is not the same as the pious and the pious is not the same as the god-beloved?
Customers pay at the pump using a credit card : Develop a model of a service station with 10 self-service pumps. Each pump dispenses each of three grades of gasoline. Customer service at the pump time is uniformly distributed between 30 seconds and two minutes.
Interest rate on single payment : Your parents will retire in 16 years. They currently have $260,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Find the equation of the tangent line to the graph of mips : MATH233 Individual Project- For the t-value you chose in part 3 above, find the equation of the tangent line to the graph of MIPS(t) at that value of t. What information about the MIPS(t) function can be obtained from the tangent line
Develop a process model of the following situation : Develop a process model of the following situation. Two types of parts are processed by a station. A setup time of one minute is required if the next part processed is of a different type that the preceding part.
Create a policy that would be appropriate for organization : This assignment will allow you to create a policy that would be appropriate for your organization. Choose 1 of the policies described in the Discussion Board, and create an appropriate policy for the organization.
How many units of pollution rights would be purchased : How many units of pollution rights would be purchased and by the two participants in this market?

Reviews

Write a Review

Financial Management Questions & Answers

  Some newer fixed assets which utilize latest in technology

MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $50,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling the..

  Yield to maturity is less than its coupon rate

A bond’s current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate. If a bond sells at par, then its current yield will be less than its yield to maturity. If a bond sells for less than pa..

  Property disposition capital gains-taxation of gross income

Bob’s personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of $6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for..

  How long will it take her to pay off the debt

Phoebe realizes that she has charged too much on her credit card and has racked up $5,700 in debt. If she can pay $200 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt?

  Outstanding student loan with required payments

You have an outstanding student loan with required payments of $550 per month for the next four years. If you are required to continue making payments of $550 per month until the loan is paid off, what is the amount of your final payment? What effect..

  Without having to employ no spontaneous external funds

A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin = 0.10; and dividend payout ratio = 0.45, or 45%. Sales last year were $100 million. Assuming that these ratios will remain constant, use the AFN equation to determine the firm’s self-supporting growth rate—i..

  Stock is expected to pay a year-end dividend

A stock is expected to pay a year-end dividend of $2.00, i.e., D1 = $2.00. The dividend is expected to decline at a rate of 5% a year forever (g = -5%). If the company is in equilibrium and its expected and required rate of return is 15%, The company..

  What will be the present value of the tax shield

A triple A rated company borrows $100 millions interest only loan for a 10 year period at fixed rate of 5.5 percent. Assuming the company is in the 35 percent tax bracket. What will be the present value of the tax shield over the ten year period assu..

  What must be the opportunity cost of capital

A stock sells for $30. The next dividend will be $6 per share. If the return on equity ROE is a constant 15% and the company reinvests 20% of earnings in the firm, what must be the opportunity cost of capital?

  The purchase of new equipment

The firm s highest risk-adjusted discount should be applied to the repair of old machinery. a new product in a related field. a new product in a foreign market. the purchase of new equipment.

  Compounding on an annual basis

Julie currently has on hand $30,000 that will be deposited in a savings account until it accumulates to $50,000. How long will it take Julie to accumulate the $50,000, assuming 7% compounding on an annual basis? Please show work.

  Begin paying annual dividends

Orca, Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $1.47 a share. The following dividends will be $1.25, $1.61, and $2.67 a share annually for the following three years, r..

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