What is the annual rate of interest you must earn

Assignment Help Accounting Basics
Reference no: EM131865832

Question - Assume the total cost of a college education will be $200,000 when your child enters college in 16years. You presently have 55,000 to invest.

What is the annual rate of interest you must earn on your investment to cover the cost of your child's college education?

Reference no: EM131865832

Questions Cloud

Principal balance of loan : You decide to apply this $20,000 to the principal balance of your loan.
Equity is currently selling-shares are outstanding : Suppose that Lil John Industries' equity is currently selling for $32 per share and that 2.5 million shares are outstanding.
Date knowledge in regards to the regulations : As part of your compliance requirements it is important to ensure that you maintain up to date knowledge in regards to the regulations
What are the primary functions of a human resources : How can those human resources functions give a competitive advantage to an organization when those functions are aligned with the organization's mission.
What is the annual rate of interest you must earn : What is the annual rate of interest you must earn on your investment to cover the cost of your child's college education
Basics of insurance underwriting : Explain the concept of risk and the basics of insurance underwriting.
Conflict in project management means disputes : A project without healthy conflict will fail to realize all the benefits of having a team with diverse skills working together.
How would loren calculate the cost of capital : The risk free rate is 3.5%, Beta is 1.5 & Market Risk premium is 4.0% How would Loren calculate the cost of capital?
What is the? project payback? period : Its expected net cash inflows are ?$60,000 per year for 8 years. What is the? project's payback? period? If the cost of capital is 10?%, what are the? project's

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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