Finding interest rates and lump sum to double

Assignment Help Financial Management
Reference no: EM131313288

Finding Interest Rates & Lump Sum to Double

a. Your parents will retire in 26 years. They currently have $290,000 saved, and they think they will need $1,700,000 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. ______%

b.If you deposit money today in an account that pays 9% annual interest, how long will it take to double your money? Round your answer to two decimal places. _________ years.

Reference no: EM131313288

Questions Cloud

Why is culture so important to an organization : Why is culture so important to an organization? Can you think of examples of a great organizational culture? How about terrible organizational cultures? How are these reflected?
What is reynolds current debt ratio : Reynolds Construction needs a piece of equipment that costs $200. Reynolds either can lease the equipment or borrow $200 from a local bank and buy the equipment. If the equipment is leased, the lease would not have to be capitalized. What would be th..
Explain the one change in agriculture policy : Give 2 specific examples of how the Farm Bill can be changed/has recently been changed to reduce exposure totoxic substances and pesticides. Explain the one change in agriculture policy you think would result in the biggest health improvements
Determine the number of the last person left in the circle : Write a program that allows you to place n people in a circle and specify that every mth person will be killed. The program should determine the number of the last person left in the circle. Use a circularly linked list to solve the problem.
Finding interest rates and lump sum to double : Finding Interest Rates & Lump Sum to Double. Your parents will retire in 26 years. They currently have $290,000 saved, and they think they will need $1,700,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they..
Discuss advantages and disadvantages of job order costing : Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. 150 words.
Why must firms adopt the identified roles : In general, identify senior management's specific role in these large-scale strategic quality programs? Cheerleader? Role model? Decision maker? Resource provider? What else?Why must firms adopt the identified roles? What is the risk of not using t..
What is an alternative name for structured insurance : What is meant by "structured insurance"?- What is an alternative name for structured insurance? -  Give two examples of structured insurance.
Design and implement a toarray method : Design and implement a ToArray method for the LinkedList class that takes a linked-list instance and returns an array.

Reviews

Write a Review

Financial Management Questions & Answers

  Most corporations pay quarterly dividends on common stock

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out i..

  What must the average beta of the new stocks added

What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return

  What are the determinants of asset demand

What is a portfolio?- What are the determinants of asset demand?- How do economists define expected return and risk?

  What is the change in price bond will experience in dollars

A 7.50 percent coupon bond with 13 years left to maturity is priced to offer a 8.2 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.8 percent. What is the change in price the bond will experience in dollars?

  Compute the after-tax rate of return for the truck

The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $8,000 a year. At the end of 4 years,..

  Estimate the expected inflation rate

A U.S. company can borrow 12,000 pounds in Great Britain for 4% interest, paying back 12,480 pounds in one year. Alternatively, the U.S. company can borrow an equivalent amount of U.S dollars in the United States and pay 8% interest. Assuming capital..

  Annual deposits into the account at the end each year

You want to have $67,000 in your savings account 12 years from now, and you're prepared to make equal; annual deposits into the account at the end each year, if the account pays 6.80 percent interest, what amount you deposit each year?

  1security brokers inc specializes in underwriting new

1.security brokers inc. specializes in underwriting new issues by small firms. on a recent offering of beedles inc. the

  Determine the project after-tax net present worth

A corporate expects to receive $35638.0 each year for 15 years if a particular project is undertaken. There will be an initial investment of $104820.0. The expenses associated with the project are expected to be $7440.0 per year. Assume straight-line..

  Suppose rate of return on short-term government securities

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 7%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 15%. According to the capital asset prici..

  Financial management for profit and non profit organisations

Discuss the issues of financial management in a non-profit organisation and compare and contrast it with financial management in a for- profit organisation.

  Shares were initially offered to investors

Tesla motors shares were initially offered to investors at $17. Three years later the price was $90 per share. What was the compound annual return that Tesla investors owned over this period? Given that Tesla paid no dividends and was not expect to s..

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