What annual interest rate must they earn to reach their goal

Assignment Help Finance Basics
Reference no: EM131106052

Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

Reference no: EM131106052

Questions Cloud

Two machines to rent for check processing : A bank is trying to determine which of two machines to rent for check processing. Machine 1 rents for $10,000 per year and processes 1000 checks per hour.
Network diagram corresponding to the solution : Show the network diagram corresponding to the solution in (a). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information.
An airport where taxis and customers arrive : Consider an airport where taxis and customers arrive (exponential interarrival times) with respective rates of one and two per minute. No matter how many other taxis are present, a taxi will wait. If an arriving customer does not find a taxi, the ..
Write a console program : You own a consulting firm and a client has engaged you to write a console program. In general, this program must prompt the user for ten numbers, ranging between 10 and 100. The program compares the number entered to the previous number. In the ev..
What annual interest rate must they earn to reach their goal : Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Approximate the behavior of a computer cpu : The limited source model can often be used to approximate the behavior of a computer's CPU ( central processing unit). Suppose that 20 terminals (assumed to always be busy) feed the CPU.
Prepare the companys journal entries : The bonds were issued for $559,224, and pay interest each July 1 and January 1. JWS uses the effective-interest method. Prepare the company's journal entries for
How has law enforcement technology evolved : How has law enforcement technology evolved? What are some of the new pieces of technology and or equipment put into service by law enforcement? What are the benefits of this new technology?
Minimum number of resources : One process requires M resource to complete a job. What should be the minimum number of resources available for N processes so that at least one process can continue to execute without blocking/waiting?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current stock price

Beta Corp has an ROE of 15%; has just paid a dividend of $1.50; a pays 10% of its earnings out in dividends, and the appropriate discount rate is 20%; what is the current stock price?

  Discuss the impact of bank capital standards

Discuss the impact of bank capital standards under the Basel Accord on the stability of the banking system.

  Choose three stocks that you feel are good long term

1- choose 3 stocks that you feel are good long term investments2- for each stock give me 5 reasons why you feel this is

  Regulating depository financial institutions

Why the United State public has not acceted the concept "The free market is the best regulator of business" for regulating depository financial institutions.

  Supply of cashews and the price of cashews

In the long run, what will happen to the supply of cashews and the price of cashews?

  What is the preferred project does your answer change if

an entrepreneur has to decide between two possible investment projects. both projects cost 80.000 upfront. the short

  Shares of common stock outstanding

1. Coppell limber Company had total earnings last year of $5,000,000, but expects total earnings to drop to $4,750,000 this year because of a slump in the housing industry. There are currently 1,000,000 shares of common stock outstanding. The comp..

  What is the variance of these returns

Over the past five years, a stock returned 8.3 percent, -32.5 percent, -2.2 percent, 46.9 percent and 11.8 percent. What is the variance of these returns?

  Determine the annual net cash cost of borrowing

Ron's Pharmacy has collected $600 in sales taxes during the March. If sales taxes must be remitted to state government monthly, what entry will Ron's Pharmacy create to demonstrate the March remittance?

  What is the value of this annuity today of the discount rate

The payments are paid on the first day of each year. What is the value of this annuity today of the discount rate is 8.5 percent? 3. (Do it on Financial Calculator) Global comunications has a 7 percent, semiannual coupon bond outstanding with..

  Explain the importance of diversification in the context

Explain the importance of diversification in the context of controlling operating exposure.

  What is shadow cost of equity

What is Shadow's cost of equity?

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