What annual rate of return have you earned

Assignment Help Financial Management
Reference no: EM131572747

You have an investment account that started with $3,000 10 years ago and which now has grown to $8,000.

a. What annual rate of return have you earned? (you have made no additional contributions to the? account)?

Your annual rate of return is __% (round to two decimal places)

b. If the investment account earns 13% per year from now? on, what will the? account's value be 10 years from? now?

(round to two decimal places)

Reference no: EM131572747

Questions Cloud

Advantage of the trade discount offered : The effective annual cost to your firm if it chooses not to take advantage of the trade discount offered and stretches accounts payable to 45 days is closest to
What is the holding period yield on your investment : If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). What is the HPY on your investment?
What is current price of the bond : Even though most corporate bonds in the United States make coupon payments semiannually, what is the current price of the bond?
The weights for all the assets with risk in our portfolio : In a hedge fund, we need to have the weights for all the assets with risk in our portfolio. Our portfolio is rebalanced every month.
What annual rate of return have you earned : What annual rate of return have you earned?. If the investment account earns 13% per year from now? on, what will the? account's value be 10 years from? now?
Proposal to build new multipurpose outdoor sports stadium : The city of Toledo has received a proposal to build a new multipurpose outdoor sports stadium.
The interest income is distributed : How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?
What is cost-benefit analysis : Cost-benefit analysis-What is cost-benefit analysis?
What is aida cost of debt and debt to equity ratio : AIDA has 10.3 million shares of common stock outstanding. What is AIDA cost of debt and debt to equity ratio?

Reviews

Write a Review

Financial Management Questions & Answers

  Find good approximations for stock price

Suppose 40.98-strike call priced at 4.5603; 41-strike call priced at 4.5732; 41.02-strike call priced at 4.5860. Find good approximations for Greeks ? at stock price 40.

  What is fourniers current cost equity

Fournier Industries, a publicly traded waste disposal Company, is highly leveraged firm with 70% debt, 0% preferred stock, and 30% common equity financing. Currently the risk-free rate is about 4.5%, and the return on the S&P 500 (the market proxy) i..

  What effective annual interest rate does the firm

A firm offers terms of 2.4/7, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 deci..

  What is the banks cost of preferred stock

What is the bank’s cost of preferred stock?

  What would you use as the interest rate in your calculation

The local credit union is offering a nominal annual mortgage rate of 15%, What would you use as the interest rate in your calculation?

  Debating the manageability of firms culture

It's been often said, "The more manageable a firm's culture is, the less valuable it will be for the firm." Post your supported agreement or rebuttal. Your initial discussion board post should be at least 200-250 words in length and should use at lea..

  What is the current yield and what is the yield to maturity

You purchased a bond for $875. It has a face value of $1,000, it pays $80 a year, and it matures after ten years. What is the current yield? What is the yield to maturity?

  Calculate the premium for a call with strike

Use the Black-Scholes formula to calculate the premium for a call with a strike of $50, a stike of $55 (already done), and a stike of $60.

  Projected financial statement analysis

The pro forma financial statement is to ensure Apple Inc. strategic plan is viable financially, Projected Financial Statement Analysis

  Calculate the cost of common equity

Calculate the cost of common equity. Assume that the expected return on a market portfolio is 15%, the company's beta is 1.20 and the risk-free rate is 4%.

  Determine the effective annual rate

Changing compounding frequency Using annual, semi annual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR).

  The required return of levered equity

What is your estimate of High Growth's cost of equity capital?

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