What is the effective annual rate of return

Assignment Help Business Economics
Reference no: EM13999228

An engineer invested $10,000 in the stock market. For the first six years, the average return was 8% annually. For the next four years, the return as 4% annually. What is the value of the account after 10 years? What is the effective annual rate of return (assume annual compounding)?

Reference no: EM13999228

Questions Cloud

Industrial organization view of market versus resource-based : Smart Phone Market The smart phone market has been dominated by Apple, but recently the Droid has been able to leverage Google’s information services into market gains while Blackberry, known for its secure business oriented network, has attempted to..
What is the initial value of the new land : What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
The various estates in land described : The various estates in land described by the author of your text in Chapter 3 arose mostly out of the struggle between the English Crown’s need for revenue and the efforts of the holders of the land to avoid taxes. Are these estates useful in this da..
What is the equilibrium value of price and quantity : Intermediate Microeconomics -- Assume the market for generic aspirin is perfectly competitive. At equilibrium, the price elasticity of demand for generic aspirin is characterized as ED = − 1/5. Where b is a numerical value, P represents the price of ..
What is the effective annual rate of return : An engineer invested $10,000 in the stock market. For the first six years, the average return was 8% annually. For the next four years, the return as 4% annually. What is the value of the account after 10 years? What is the effective annual rate of r..
Determine the health and direction of our economy : Explain a/an economic indicator used to determine the health and direction of our economy. Discuss whether the indicator is cyclical or counter cyclical. What are some other indicators of how well the economy is doing not mentioned directly in the te..
Calculate the amount of interest expense : Calculate the amount of interest that Mason should capitalize in 2011 and 2012 using the specific interest method.
Local community wants to purchase a pool heater : A local community wants to purchase a pool heater for its public pool in one year. The cost of the heater is $1,000,000. The local bank is willing to pay the interest on this amount at 6%, compounded monthly to help support the purchase of the pool h..
If the quantity of housing supplied in a community : If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

Reviews

Write a Review

Business Economics Questions & Answers

  In the neoclassical growth theory

In the neoclassical growth theory

  What is the dollar value of the deadweight loss

What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?

  For decision making for the firm with market power

For decision making for the firm with market power, fixed costs are:

  Will the deer population eventually reach equilibrium

Deer have become increasingly apparent in a rural county. Last year it was estimated that there were 40 breeding pairs (a deer must reach the age of 1 to breed). Do you think it is likely that the deer population in the county is increasing? Will the..

  Loans market

Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.

  What will be the amount of interest accumulated at the time

Emily Dorsey's current salary is $85,000 per year, and she is planning to retire 19 years from now. She anticipates that her annual salary will increase by $1,000 each year ($85,000 the first year, to $86,000 the second year, $87,000 the third year, ..

  Best example of a network good

Which of the following is the best example of a network good? People sometimes point to similar gas prices at competing gas stations as evidence of collusion when they could just be selling at market price. If this is not good evidence of collusion, ..

  What is the profit-maximizing price and output level

What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC, D and MR curves and illustrate the equilibrium point.

  Disadvantages for insurance systems

What are the incentives, advantages, and disadvantages for insurance systems that pay primary care physicians through capitation when compared to fee for service?

  Qa car manufacturer claims that its vehicles average at

q.a car manufacturer claims that its vehicles average at least 25 miles per gallon with a population standard deviation

  What circumstances might the inflation rate not decrease

Use a short-run Phillips curve to Explicate why the inflation rate may decrease over the course of 2009. Under Illustrate what circumstances might the inflation rate not decrease during 2009.

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

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