Return on your investment

Assignment Help Financial Management
Reference no: EM131835279

1. If you invest $2,500 each year from now until you retire (for 40 years) how much will you have in 40 years? Your return will be 8%.

2. Would you rather have $5,000 in 4 years or $4,000 today? You can get a 10% return.

3. How much will you have in 10 years if you invest $1,000 today and you can get a 6% return that is compounded semiannually?

4. What is your car payment if you buy a car for $25,000 put 10% down and finance the rest at 4% for 3 years?

5. If you leave the Arts Foundation $30,000 how much can they spend each year forever if they can get a 6% return?

1. How much do you have to invest today to have $20,000 in 10 years if you can get 6% return on your investment

2. How much will you have in 5 years if you invest 15,000 today and you can get a 7% return on your investment

3. How much do you need in the bank when you retire if you would like to withdraw $150,000 each year for the 25 years that you are retired? You believe you can get an 7% return on your investment.

Reference no: EM131835279

Questions Cloud

Risk of investing in primary market vs. the secondary market : What would be the risk of investing in the primary market (especially IPO’s) vs. the secondary market? And what might this imply about returns?
What non-financial factors would be important in analysis : What techniques would you use? Why? What non-financial factors would be important in your analysis?
What is the loan effective annual rate : A loan is offered with monthly payments and a 11.75 percent APR. What’s the loan’s effective annual rate (EAR)?
What is the current share price for the stock : Universal Laser, Inc., just paid a dividend of $3.75 on its stock. What is the current share price for the stock.
Return on your investment : How much do you have to invest today to have $20,000 in 10 years if you can get 6% return on your investment
Whats the future value of multiple annuities : Assume that you contribute $220 per month to a retirement plan for 25 years. Whats the future value of multiple annuities?
What is your firm free cash flow this year : Your firm has EBITDA of $10, depreciation of $2, interest expense of $2, and paid taxes of $1.50 this year. What is your firm’s free cash flow this year?
Compute the future value in year : Compute the future value in year 9 of a $3,300 deposit in year 1, and another $2,800 deposit at the end of year 5 using a 9 percent interest rate.
What is green wave inc unlevered cost of capital : Green Wave Inc. has $30M in debt, and $70M in equity (market values). what is Green Wave Inc.’s unlevered cost of capital?

Reviews

Write a Review

Financial Management Questions & Answers

  A review of a biography of the british investment banker

What is underwriting? In what sense is an investment bank that engages in underwriting acting as a financial intermediary?

  What is the after-tax cash flow from sale of the machinery

what is the after-tax cash flow from the sale of the machinery?

  Calculate the present value using discount rate

Calculate the present value using a 10% discount rate: If the discount rate were changed to 11% would you expect PV to increase or decrease? Why? if the initial investment was $10,000, would you do the project? Why/ why not?

  Clients plan for retirement

You are financial planner who helps clients plan for retirement. Assuming that your client anticipates that her tax rate will remain at 17 percent in retirement

  What is the monthly payment for this purchase

URGENT: A house is priced at $125,000. A down payment of $25,000 has been made. Equal payment will be installed every month, so that the loan can be repaid in 10 years. The annual interest rate is 12.00%, compounded monthly. What is the monthly payme..

  How many months will it take you to pay off entire balance

When you graduate you have $15,000 on your credit card which charges an APR of 14% compounded monthly. The credit card company tells you that your minimum payment is $232.90. If you make the minimum payment every month, how many months will it take y..

  The economic order quantity

The economic order quantity- determines the reorder point. provides the lowest inventory costs.

  Explain the techniques of capital budgeting and the steps to

The key Components of the financial system is the money market that acts as a fulcrum of monetary operations. Write down the important points under each category mentioned below. Every firm is going on concern, whether domestic or MNC. Explain the te..

  Using discounted cash flow approach what is cost of equity

The earnings, dividends and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby's common stock sells for $23 per share, its last dividend was $2.00 and the company will pay a dividend of $2.14 at the end of the curren..

  Maintains constant debt-equity ratio

how much debt will Caterpillar have if it maintains a constant debt-equity ratio?

  You will be using the black-scholes option-pricing model to

you will be using the black-scholes option-pricing model to price a call option. look up todays value of the stock nfec

  Create an npv profile for the two projects

Create an NPV Profile for the two projects How do you create an NPV Profile for the two projects using the information provided? At what interest rate(s) does Project A become undesirable; at what interest rate does Project B become undesirable and w..

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