What annual rate of rate will you have to earn

Reference no: EM132068146

Question: (Rate of Return of an annuity) You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of rate will you have to earn to reach your goal? I have attempted several times with not coming up with the expected answer already provided. Please show detailed work on on this was solved.

Reference no: EM132068146

Questions Cloud

What are the investment weights needed for the two bonds : As an alternative, you want to consider immunizing the liability using 8-year and 30-year zero coupon-bonds.

Calculate the market premium : The rate of return for bonds issued by the Australian Commonwealth Government Treasury is given as 2% per annum. The return for the Australian share market.

What is the capital gain for the stock : You're analyzing the stock of a certain company. The most recent dividend paid was $7 dollars per share. The company's discount rate is 12%.

Explain and interpret the ratios for the category : You are required to present your findings on either Solvency, Profitability OR Liquidity to the class.

What annual rate of rate will you have to earn : You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of rate will you have to earn.

What price motorcycle can raul afford : Raul Gutierrez would like to purchase a sport motorcycle, and can afford a monthly payment of up to $625. He qualifies for a 6 year loan, paid monthly.

Which of the given acting was argued : RCT is a firm in financial distress. They have extremely high financial leverage, pay high property taxes, pay high wages, and find themselves the defendant.

Solve the issue using given data : The rate of return on an investment of $1,500 that doubles in value over a 4-year period, and produces a $300 annual cash flow, is nearest to which value?

What is the probability of a female dying : What is the probability a male will live from age 42 up to age 45? What is the probability of a female dying from age 45 through age 48?

User Account

All Pages