What amount of money sarah will have to invest today is

Assignment Help Financial Econometrics
Reference no: EM13328471

Sarah Wiggum would like to make a single investment and have $2.2 million at the time of her retirement in 26 years. She has found a mutual fund that will earn 7 percent annually. If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is? If Sarah earned an annual return of 17 percent, how soon could she then retire?

Reference no: EM13328471

Questions Cloud

What is the rms strength of the electric field : In an EM wave traveling west, the B field oscillates vertically and has a frequency of 88.0kHz and an rms strength of 6.35×10?9T
Determine the objects acceleration magnitude and direction : An 86lb net force is applied to a 42 Kg object at an angel. Determine the object's acceleration magnitude and direction
Determine how much additional money must nicole deposit : Nicole needs $44,100 as a down payment for a house 6 years from now. He earns 4.5 percent on his savings. Theo can either deposit one lump sum today for this purpose or he can wait a year and deposit a lump sum.
What is the kinetic energy when it hits the ground : A baseball outfielder throws a 0.15 kg baseball at a speed of 40 m/s and an initialangle of 30?. What is the kinetic energy when it hits the ground
What amount of money sarah will have to invest today is : If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is. If Sarah earned an annual return of 17 percent, how soon could she then retire.
Find the position of the teams as function of time : A tug of war is held between two teams of five men each. The mass of each man is 80 kg and he can initially pull on therope with a force of 1000 newtons. find the position of the teams as function of time
Determine what is the amount of each payment : The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent.
What is the impulse imparted to the hammer : When a hammer strikes a nail, it is compressed along its length. What is the impulse imparted to the hammer
Find the temperature of the hot filament : A certain light bulb has a tungsten filament with a resistance of 19 ohms when at 20 degrees celsius and 140 ohms when hot. Find the temperature of the hot filament

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Compute the duration for bond c and rank the bonds

Compute the duration for bond C, and rank the bonds on the basis of their price volatility. The current rate of interest is 8 percent, so the prices of bonds A and B are $1,000 and $1,268 respectively.

  Find the number of full payments needed

A debt of $4000 with interest at 12% compounded semi annually, is to be repaid by semi-annual payments of $400 each. Find the number of full payments needed and the final payment.

  Find the firms dividend payout ratio and retention ratio

Payout and retention ratio: Drekker, Inc., has revenues of $312,766, costs of $220,222, interest payment of $31,477, and a tax rate of 34 percent. It paid dividends of $34,125 to shareholders.

  What is a stock split

What is a cash, special, or stock dividend, what is a stock split and why is a liquidating dividend noteworthy?

  Determine the transactions entered into by city of fordache

Make all necessary entries in the appropriate governmental fund general journal and the government-wide governmental activities general journal for each of the following transactions entered into by the City of Fordache.

  Calculate table of interest rates for 5years based on info

Calculate a table of interest rates for 5 years based on the following information: The pure interest rate is 2% Inflation expectations for year 1 = 3%, year 2 =4%, years 3-5 =5%

  Determine which security is the better buy at par

The yield on a coporate bond is 10%, and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.50% is available. Which security is the better buy

  Calculate npv-irr-mirr-payback and discounted payback

A Firm with a 14% WACC is evaluating two projects for this year's capital budget. After tax cash flows, including depreciation are as follows; Project A; -6,000 , 2,000, 2,000, 2,000, 2,000, 2,000

  Calculate present value of a perpetuity that makes a payment

Calculate the present value of a perpetuity that makes a payment of $1,000,000 every 6 months, with the next payment being made in exactly 6 months from now.

  Find what is the simple interest rate for the account

Starting with $2,000 on March 3, you deposit $500 23 days from March 3, withdraw $800 69 days from March 3, and deposit $600 121 days from March 3. If your final balance is $2,458 150 days from March 3

  How to compute the required rate of return

Russo's Gas Distributor, Inc. wants to determine the required return on a stock with a beta coefficient of 0.5. Assuming the risk free rate of 6 percent and the market return of 12 percent.

  What is the annual rate of return on the stock

Will has been purchasing $25,000 worth of New Tek stock annually for the past 11 years. His holdings are now worth $598,100. What is the annual rate of return on this stock

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