Determining the annual interest rate

Assignment Help Finance Basics
Reference no: EM132500931

Problem: Your parents will retire in 21 years. They currently have $400,000 saved, and they think they will need $1,800,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

Reference no: EM132500931

Questions Cloud

What is the appropriate tax real estate tax rate : You are the budget director for Mordor. You have been working with the tax assessor to determine the appropriate tax rate for all the real estate in Mordor.
Determine the cost of jobs still in production as of march : Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? Determine the cost of jobs still in production as of March
What is the highest and best use of the site : What is the Highest and Best use of the site and what is the residual value of the land? Is it worth the effort to attempt to have the land re-zoned for office
What amount should be recorded and what is the journal entry : Payment relates to the wages expense incurred during the last week of May. What is the journal entry for this and what amount should be recorded?
Determining the annual interest rate : Your parents will retire in 21 years. They currently have $400,000 saved, and they think they will need $1,800,000 at retirement.
Is there any literature to support your response : What do you believe is the most important aspect or criteria for developing and validating an effective response plan? Why do you see this as the most important
Determine the advantages of zero-based budgeting : Should a Zero-Based Budgeting approach be considered for your organization, and how do you think it would be implemented?
How much will net income increase : Units produced and sold 30,000 units. If the sales is increased to $50 per unit and nothing changes, how much will net income increase?
Define and explain each account line that was completed : Analyze, evaluate, and develop conclusions about the company performance based on the financial information. Define and explain each account line that complete.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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