Annual investment and gets the same rate of return in future

Assignment Help Financial Management
Reference no: EM13847243

A perceptive engineer started saving for her retirement 15 years ago by diligently saving $18,000 each year through the present time. She invested in a stock fund that averaged a 12% rate of return over that period. If she makes the same annual investment and gets the same rate of return in the future, how long will it be from now (time zero) before she has $1,500,000 in her retirement fund?

Reference no: EM13847243

Questions Cloud

Western hydra systems makes panel milling machine : Western Hydra Systems makes a panel milling machine with a 2.7-m-diameter milling head that emits low vibration and processes stress-relieved aluminium panels measuring up to 6000 mm long. The company wants to borrow money for a new production/wareho..
Discuss the benefits provided by network modeling : Discuss the benefits provided by network modeling
Evaluate the csr and mission : Conduct a thorough and well-argued analysis of your selected organisation's strategic intent posture that provides evidence that the organisation either has, or does not have, a strong strategic-intent posture - Evaluate the CSR and mission
Statements regarding firms optimal capital structure : Which of the following statements regarding a firm's optimal capital structure is true? Review the list and identify which items are correct
Annual investment and gets the same rate of return in future : A perceptive engineer started saving for her retirement 15 years ago by diligently saving $18,000 each year through the present time. She invested in a stock fund that averaged a 12% rate of return over that period. If she makes the same annual inves..
Case analysis:degree appraisals case study : Case Analysis: 360 Degree Appraisals Case Study
A firms dividends payable account increased : A firm's dividends payable account increased $10,000 during the year. The firm also declared $35,000 of dividends. What is the complete disclosure in the direct method SCF for these events?
Define the following pointer and array : Define the following Pointer and Array. Answer the following question and provide an example: What is the difference between a one-dimensional and a two-dimensional array
Compounded quarterly to accumulate amount : Fred plans to go for vacation to India in ten years from now. He estimates that he will need $20984 for the trip. How much does he need to place in a savings account today that earns 6.24 percent per year compounded quarterly to accumulate this amoun..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the amount of net working capital

Romo, Inc. has current assets of $1,850, net fixed assets of $8,600, current liabilities of $1,600, and long-term debt of $6,100. Calculate the value of the shareholders' equity for this firm. Calculate the amount of net working capital.

  What was the average annual growth rate of salary

3 years ago Marias annual salary was $36785. Today she earns $86218. What was the average annual growth rate of Marias salary?

  Bond valuation problem

Bond X is no callable and has 20 years to maturity, a 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 11%; and if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5, years the yie..

  Bond pays a semi annual coupon, and the last coupon

A bond pays a semi annual coupon, and the last coupon was paid 61 days ago. If the annual coupon payment is $75, what is the accrued interest? (Assume 182 days in the 6-month period.)

  Great depression and the financial crisis

Identify the differences between the United States experiences during the Great Depression and the financial crisis of 2007-2009 (Check all that apply).

  Find the modified internal rate of return

Find the modified internal rate of return (MIRR) for the following series of future cash flows. The company can reinvest the cash flows from the project at an annual rate of 4.45%. The initial outlay is $670,560.

  Assuming college savings are invested in account paying

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child’s college education. Assuming college savings are invested in an account paying 7% interest, then what is the..

  Determine the annual percentage rate of increase for budget

The annual budget for a University Department has been increasing by the same percentage each year and is expected to continue to increase at this percentage rate annually for the foreseeable future. This year the budget is $1.65 million and two year..

  Other industries are performing well are referred

Industries that generally perform well when other industries are performing well are referred to as:

  About debt management ratios

Which of the following statements about debt management ratios is incorrect?

  How much could he withdraw at the beginning of each

Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account..

  What is the value ofthe stock if the required rate of return

A stock just paid an annual dividend of $2. The dividends are expected to grow at 20%per year over each of the next three years and 5% per year thereafter. What is the value ofthe stock if the required rate of return is 12%?

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