What annual interest rate

Assignment Help Financial Management
Reference no: EM131300002

What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $80,500 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131300002

Questions Cloud

What is the value of your retirement plan : Assume that you contribute $400 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $800 per month for another 25 years. Given a 8 percent interest rate, what is the value of your retirement plan after the 5..
What is an estimate of barretts price per share : Barrett Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends, and it has no plans to pay dividends in the near future. What is the present value ..
The bonds price be higher-lower or unchanged : Explain why we observe that, when interest rates increase, bond prices decrease! Don’t lenders like high interest rates? An investment provides cash inflows of $500 per year for 15 years. What is the payback period if the initial cost is $10,000? Sho..
Calculated by taking most recent closing price subtracting : The momentum oscillator is calculated by taking the most recent closing price subtracting the closing price from a prior date that is a set number of days in the past, and multiplying the result by 100. Please explain why when the ROC oscillator cros..
What annual interest rate : What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $80,500 in six years?
Measuring and evaluating healthcare quality : Measuring and Evaluating Healthcare Quality. What are the major challenges to using outcomes as a basis for assessing quality? How can Quality-Adjusted Life Years (QALY) be used to inform health policy? Should Quality-Adjusted Life Years (QALY) be a ..
What is the annuitys future value : An annuity of $1,000 per year has 10 annual cash flows, with the first one being today. At an interest rate of 15% annually, what is the annuity’s future value?
What is the annuitys future value : An annuity of $1,000 per year has 10 annual cash flows, with the first one being today. At an interest rate of 15% annually, what is the annuity’s future value?
Measuring and evaluating healthcare quality : Measuring and Evaluating Healthcare Quality. What are the major challenges to using outcomes as a basis for assessing quality? How can Quality-Adjusted Life Years (QALY) be used to inform health policy? Should Quality-Adjusted Life Years (QALY) be a ..

Reviews

Write a Review

Financial Management Questions & Answers

  About introducing a new surface cleaning machine

Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 15 units per year at $305,000 net cash flow per unit for the next five years. The eng..

  Briefly describe what happens in foreign exchange markets

Briefly describe what happens in foreign exchange markets. The spot Yen/$US exchange rate is Yen119.795/$US, and the one-year forward rate is Yen114.571/$US. If the annual interest rate on dollar CDs is 6%, what annual interest rate would you expect ..

  Yield to maturity is the bond offering

Yield to Maturity A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (LG7-6)

  What is the dollar amount of costly trade credit the firm

Taylor Textbooks Inc. buys on terms of 1/12, net 59 days. It does not take discounts, and it typically pays on time, 59 days after the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of costly trade cred..

  How sensitive is ocf to changes in quantity sold

Consider a three-year project with the following information: initial fixed asset investment = $870,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.05; variable costs = $22.55; fixed costs = $210,000; ..

  Approximate and exact expected real returns on the portfolio

Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .26 .26 .38 .55 Normal .50 .21 .19 .17 Bust .24 .05 −.38 −.46. If your portfolio is in..

  What is effective annual return friendlys earns

Friendly’s Quick Loans, Inc., offers you $7.25 today but you must repay $9.25 when you get your paycheck in one week (or else) 1)What is the effective annual return Friendly’s earns on this lending business? 2) If you were brave enough to ask, what A..

  Offered big production contract by new client

After spending $10,000 on client development, you have just been offered a big production contract by a new client. The contract will add $200,000 to your revenues for each of the next 5 years and it will cost you $100,000 per year to make the additi..

  What is the companys target debt-equity ratio

Fama’s Llamas has a weighted average cost of capital of 10.1 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 8.1 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio?

  Discuss importance of budgeting for these types of companies

Consider companies that have very distinct seasonal variations. Some companies may have periods of very little to no sales. Discuss the importance of budgeting for these types of companies.

  Replacement costs for the items have increased

What would it cost an insurance company to replace a family’s personal property that originally cost $20,000? The replacement costs for the items have increased 20 percent

  Income before interest-depreciation and taxes

The MoMi Corporation’s income before interest, depreciation and taxes, was $2.4 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 18% of pre..

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