Retirement-assuming annual compounding

Assignment Help Financial Management
Reference no: EM13850586

Suppose you can save $10,000 every year for 30 years until your retirement. What interest rate do you have to earn (assuming annual compounding) to have $500,000 when you retire?

Reference no: EM13850586

Questions Cloud

General environment of organizations : Q.1. Identify at least four forces in the general environment of organizations and provide an example of each for an industry or business. How do these forces differ from the external stakeholders in the task environment?
How standards of care and nurse practice act be applied : Look at the legal malpractice case study that has been assigned to your group. Describe the case and discuss the standard of care that the parties will be held to in this case. How will the standards of care and the Nurse Practice Act be applied i..
What is the annual depreciation : Assume that a piece of equipment is purchased for $100,000. It costs $5,000 to install the equipment. We expect it to last for 5 years, and believe that we will be able to sell it for $25,000 at the end of that five year period of time. Using straigh..
Financial and the accompanying notes and schedules : financial and the accompanying notes and schedules, compute the following values for each company in 2011
Retirement-assuming annual compounding : Suppose you can save $10,000 every year for 30 years until your retirement. What interest rate do you have to earn (assuming annual compounding) to have $500,000 when you retire?
Corporate tax rate-what is the NPV of the project : Suppose Klausenheimer, Inc. is considering a new project. The project alone will cost $50,000,000 and is expected to generate after-tax cash flows of $5,000,000, $6,000,000 and 7,000,000 during the first three years. To account for the additional ris..
Conduct a thorough and well-argued analysis : Conduct a thorough and well-argued analysis that provides evidence that one of your chosen companies does have a strong strategic-intent posture - explain the strategic implications of your analysis and speculate on what this strong strategic inte..
Weighted-average cost of capital at new capital structure : Whispering Pines, Inc. is all-equity-financed. The expected rate of return on the shares is 12%. Calculate the opportunity cost of capital for an average-risk Whispering Pines investment. Calculate the company’s weighted-average cost of capital at th..
Objectives of several organisations : Strategy and Sustainability- The Expression of Organisational Values and Vision - Examine the mission, vision and objectives of several organisations and select the company that best meets the requirements described.

Reviews

Write a Review

Financial Management Questions & Answers

  Leverage gives the illusion of higher returns

Explain, in your own words, when and how the composition of capital (the mix of debt and equity) does not affect the value of the firm and Discuss this statement: leverage gives the illusion of higher returns.

  Rate of return and has a required discounted payback

Danny Zuteck is considering an investment which will cost him $120,000. The investment produces no cash flows for the first year. In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then to $75,000 for the followin..

  Simple interest on its investment accounts

First Simple Bank pays 9.1 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 11..

  Costs of providing long-term care-anticipation of the costs

Given the increasing longevity of Americans and the costs of providing long-term care, anticipation of the costs should be a major element of every family’s financial planning. Current information suggests however, that very few families or individua..

  Name of financial tool-competitor profiling

Name of financial tool: Competitor profiling

  Provide a self-analysis

Describe the key responsibilities of one of these roles in the sector based on your interview -

  What is common-size statement value of inventory

A firm has sales of $1,110, net income of $236, net fixed assets of $458, and current assets of $322. The firm has $95 in inventory. What is the common-size statement value of inventory?

  Adjusted gross income for the current year

Determine Tonya's adjusted gross income for the current year.

  What is the approximate future value compounded monthly

What is the approximate future value compounded monthly, of a current investment of $28,000 at an annual interest rate of 3.5% for the next 20 years?

  What interest rate did she obtain on her investment

A woman made ten annual end-of-the-year purchases of $1000 of common stock. At the end of the tenth year, she sold all the stock for $12000.  What interest rate did she obtain on her investment?

  Indifference curve analysis

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change.

  What is the economic or npv break-even number of books

KMW Inc. sells finance textbooks for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of three years. What is the economic or N..

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