What rate of return will need in order to achieve goal

Assignment Help Financial Management
Reference no: EM131977589

Franklin Templeton has just invested $10,060 for his son (age one). This money will be used for his son’s education 18 years from now. He calculates that he will need $105,895 by the time the boy goes to school.

What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131977589

Questions Cloud

Illustrate the equivalence of various valuation methods : To illustrate that financing has no impact on firm value if there are no taxes and to further illustrate the equivalence of various valuation methods.
Which investment provides more interest earned : X and Y. X provides an interest rate of 12.5 % per year, Which investment provides more interest earned?
Three-year bond according to theory of liquidity premium : Calculate the yield of a two-year bond and a three-year bond according to the theory of liquidity premium.
Explain the relationship between Social engineering and BYOD : Explain the relationship between Social engineering and BYOD with reference to the chapter discussion.
What rate of return will need in order to achieve goal : What rate of return will Mr. Templeton need in order to achieve this goal?
How long will it take you to pay off the balance : Assuming your interest rate is 18%, how long will it take you to pay off the balance?
Bond market and market of loanable funds : Use the figures of both bond market and market of loanable funds to illustrate effect of crisis on bond prices and interest rates of these two types of bonds.
Firm value is defined as collective value of debt and equity : All calculations for valuation are done today. Firm value is defined as collective value of debt and equity.
Fair market value on your balance sheet : Have you included all your assets at fair market value (not historical cost) on your balance sheet?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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