Assume interest is compounded annually

Assignment Help Financial Management
Reference no: EM131577402

You find out that if you deposit your current savings of $20,000 today in a bank account and keep on depositing $15,000 every year (at the end of each year), you will have one million dollars when you retire 35 years from today. What is the annual interest rate paid by the bank account? Assume interest is compounded annually.

Reference no: EM131577402

Questions Cloud

What is the capital cost per piece produced on this machine : what is the Capital Cost per piece produced on this machine if you make 1,000 pieces per year during a 5 year run.
What does the manufacturer hope to gain : What does the manufacturer hope to gain?
How much money will be in account at end of that time period : How much money will be in the account at the end of that time period?
What is the rate of return on this investment : Maybepay Life Insurance Co. is selling a perpetual contract that pays $4000/year. What is the rate of return on this investment?
Assume interest is compounded annually : What is the annual interest rate paid by the bank account? Assume interest is compounded annually.
The account at end of that time period : How much money will be in the account at the end of that time period?
What is cash flow to stockholders : If no new debt was issued during the year, what is the cash flow to stockholders??
What real amount must you deposit each year : What real amount must you deposit each year to achieve your goal?
What is the sum of the market value of NWC : What is the sum of the market value of NWC and the market value of fixed assets?

Reviews

Write a Review

Financial Management Questions & Answers

  What does the market believe will be the stocks price

Crisp Cookware's common stock is expected to pay a dividend of $3 a share at the end of this year (D1 = $3.00); its beta is 0.8; the risk-free rate is 5.2%; and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, ..

  Market efficiency on the investment strategy

Discuss the various forms of market efficiency. discuss the implications of the various forms of market efficiency on the investment strategy.

  Determine the yield to investor

3 Today, the one-year U.S. interest rate is 2%, while the one-year interest rate in Mexico is 6%. The spot rate of the Mexico peso (MXP) is $.08 the one-year forward rate of the MXP exhibits a 11% discount. Determine the yield (percentage return on i..

  What is company average accounts receivable figure

Two Doors Down, Inc., has weekly credit sales of $40,400, and the average collection period is 25 days. What is the company's average accounts receivable figure?

  What is effective or equivalent-annual cost of trade credit

The Thompson Corporation projects an increase in sales from $1 million to $3 million, but it needs an additional $300,000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing a..

  How much will she have in her account after the ten years

Jacquie plans to deposit $3500 into her savings account for each of the next 5 years, and then $2000 per year for 5 years after that (all at the year end) she anticipates interest rates to be 6% for the next 3 years and then 9% thereafter. How much w..

  Everest has also found that after only two years of using a

everest has also found that after only two years of using a machine for a semi-automatic process a more advanced model

  What is the market value added for this division

What is the Market Value Added (MVA) for this division if the constant growth FCF model applies and the division expects a constant growth in sales and FCFs of 6%?

  About the economic order quantity

Cheeseburger and Taco Company purchases 11,287 boxes of cheese each year. It costs $24 to place and ship each order and $8.83 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..

  What is total rate of return on bond

Consider a bond paying a coupon rate of 7.75% per year semiannually when market interest rate is only 3.1% per half-year. What is total rate of return on bond.

  Find the market value of equity and cost of equity

(Cost of Capital) The company has 100 000 shares outstanding. The shares are listed in a stock exchange and currently trade at 15 Dollar per share. The risk free interest rate is currently 3% and the market risk premium is estimated to be 5%. Find Ma..

  What is the total monthly sales budget for store

SITXFIN402 Manage Finances within a Budget Projects. You work as a regional manager for a small travel agent, Happy Holidays who operate three stores. What is the total monthly sales budget for Store 1

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