What is the rate of return investors earn on this investment

Assignment Help Accounting Basics
Reference no: EM133141647

Question - You are considering investing in a security that will pay you $3,000 in 34 years.

a. If the appropriate discount rate is 10 percent, what is the present value of this investment?

b. Assume these investments sell for $1,189 in return for which you receive $3,000 in 34 years. What is the rate of return investors earn on this investment if they buy it for $1,189?

Reference no: EM133141647

Questions Cloud

How much income should black recognize on this investment : White reported net income of $110,000 for 2013 and paid dividends of $80,000 on October 1, 2013. How much income should Black recognize on this investment
7DIBU008W Strategic Innovation in a Digital World Assignment : 7DIBU008W Strategic Innovation in a Digital World Assignment Help and Solution, University of Westminster - Assessment Writing Service
Both relational and multidimensional databases : Both relational and multidimensional databases provide information needed to support management decision-making.
What factors should appropriately be considered : Sonny Manufacturing Ltd sought a $2 million loan from Bank of Australia. What factors should appropriately be considered
What is the rate of return investors earn on this investment : Assume these investments sell for $1,189 in return for which you receive $3,000 in 34 years. What is the rate of return investors earn on this investment
Prepare all journal entries by First Lincoln Bank : Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years
Discuss trends in financial inclusion and channels : Discuss trends in financial inclusion and channels through which it can promote economic growth - Does increased aid availability lead to increased economic
Would the effect on Canada GDP or GNP be greater : Would the effect on Canada's GDP or GNP be greater? Explain. Would the effect on U.S. GDP or U.S. GNP be greater? Explain
Compute the annual rate of return for the new hoist : The hoist has an 8-year life and an estimated salvage value of $3,000. Compute the annual rate of return for the new hoist

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the graph of a variable cost when plotted against

The graph of a variable cost when plotted against its related activity base appears as a

  Prepare an unadjusted trial balance at june

The Infiti Company started business on January 1, 2013. Prepare an unadjusted Trial Balance at June 30, 2013. Prepare CLOSING ENTRIES

  Find how much will the bond investors the company

Find How much will the bond investors the company in accrued interest onand how much will the bond investorsin interest on June 30?

  Compute the Ending Inventory at Retail

Compute the Ending Inventory at Retail and then use your cost ratio from above to compute the estimated Ending Inventory at Cost

  Prepare missing adjusting entry related to the prepaid rent

The equipment had an original cost of 120,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry.

  Discuss the tax-inclined its a new opportunity

Only one that's difficult is the Inspector General. Almost 100% have never heard of an Enrolled Agent, so for the tax-inclined it's a new opportunity

  Determine the amount of the president bonus

Assuming the company's income before bonus and taxes was $38,650,000 and the tax rate is 20%, determine the amount of the president's bonus

  What amount should be shown in Valley balance sheet

What amount should be shown in Valley's December 31, 2018, balance sheet as "Cash and cash equivalents"

  In august one of the processing departments at knepp

in august one of the processing departments at knepp corporation had beginning work in process inventory of 17000 and

  What amount of time would you require of your employees

If you were the boss of a group of CPAs, what amount of time would you require of your employees? Would you be willing to pay them for that time?

  What amount should the company report as net cash

Creative Sound Systems sold investments, land, and its own common stock for $40 million, What amount should the company report as net cash

  How do you calculate the final rate of return on beginning

How do you calculate the final rate of return on beginning and end stock prices? Example: My beginning stock was worth 4,129 and the end stock was worth 1,922.50

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