Time to reach financial goal and effective interest rate

Assignment Help Financial Management
Reference no: EM131566868

1. Time to reach a financial goal

You have $39,117.59 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $260,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.

answer: _____ years

2. Effective interest rate

You borrow $250,000; the annual loan payments are $38,075.05 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

answer: ______%

Reference no: EM131566868

Questions Cloud

What the meaning of domain is : Explain in your own words what the meaning of domain is. Also, explain why a denominator cannot be zero.Factor all polynomials completely .
How familial influence can help reinforce the behavior : Explain how familial influence can help reinforce the behavior - How can family help to reinforce this behavior?
Non-verbal communication : One of the problems with non-verbal language is that it is difficult to interpret. You are giving a presentation to your associates at work.
Expression for the differentiable function : Suppose p(L) = P F (L) - wL, where F is a differentiable function and P and w are constants. Find an expression for dp/dL.
Time to reach financial goal and effective interest rate : How many years will it take to reach your goal. You borrow $250,000; annual loan payments are $38,075.05 for 30 years. What interest rate are you being charged?
Essay on the impact of the black death : How does your knowledge of other epidemics in history provide additional insight into the impact of the Black Death
What is the journal entry to record the bad debt expense : EMBA FINANCIAL ACCOUNTING QUESTIONS. What is the journal entry to record the bad debt expense? What is the Accounts Receivables (Net) Balance at the end of year
Explain what leadership means to you : Explain what leadership means to you. What is the connection between leadership and psychology?
Write a paper discussing how you would market the product : Write a paper discussing how you would market the product.Developed a new sports drink that is in a container that will keep it cool.

Reviews

Write a Review

Financial Management Questions & Answers

  Is aggies transaction exposure likely to be affected

All of these companies invoice the products in US dollars. Is Aggie's transaction exposure likely to be significantly affected if the euro strengthens or weakens? Explain.

  Most important international finance centers

By far the most important international finance centers are: New York and London New York, London and Tokyo New York, London, Tokyo, Paris and Zurich New York, London, Tokyo, Paris, Zurich, and Frankfurt

  Cost of capital and capital structure

Two firms, A and B, both produce widgets. The price of widgets is $1 each. Firm A has total fixed costs of $500,000 and variable costs of 50¢ per widget. Firm B has total fixed costs of $240,000 and variable costs of 75¢ per widget. The corporate tax..

  Discuss the different types of notes-bills and bonds

Discuss the different types of notes, bills, and bonds that are sold in the U.S. Treasury market. Discuss the different participants in the markets. Discuss how arbitrage opportunities affect the different market participants and the types of interes..

  What is the dollar amount of dividends

Julio purchased a share one year ago for $27. The share is now worth $32, and the total return to Julio for owning the share was 37 per cent. What is the dollar amount of dividends that he received for owning the share during the year?

  How much will you receive on the next coupon date

You purchase 3,000 bonds with a par value of $1,000 for $980 each. The bonds have a coupon rate of 7.2 percent paid semi annually, and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mat..

  What is the after-tax cost of debt

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield..

  What is the break-even salvage value us dollars

Petrus Company has unique opportunity to invest in a two-year project in Australia. What is the break-even salvage value US dollars?

  What is the expected return on asset using capm model

what is the expected return on asset i using CAPM model? %

  Assume the repeatability of cash flows for alternative

Assume the repeatability of cash flows for alternative 1.

  Arrange the following items into an income statement

Arrange the following items into an income statement. Label each item, place it in the appropriate category, and determine the bank's bottom- line net income. a. Interest paid on time deposits under $ 100,000: $ 78,002 b. Interest paid on jumbo CDs: ..

  What will be the tax on gain from selling the jets

What will be the book value of the jets in 5 years? What will be the Tax on Gain from selling the jets?

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