Investment-annual rate of return

Assignment Help Financial Management
Reference no: EM13847009

Suppose you are committed to owning a $197,000 Ferrari. If you believe your mutual fund can achieve a 11 percent annual rate of return and you want to buy the car in 8 years on the day you turn 30, how much must you invest today?

Reference no: EM13847009

Questions Cloud

Waldo County-calculate the NPV : Read the case study “Waldo County” at the end of Chapter 10. In a two –to –four page paper, address the following: Given the projections in the Table 10.8, in one- to –two pages, calculate the NPV and interpret your results.
Currency hedging-global financing operations : Explain how your topic is used in global financing operations and describe its importance in managing risks.
Protect yourself against his retirement : Suppose you own 100 shares of Dell Inc. stock. Today it is trading at $15 per share, but you're worried Michael Dell might retire again, causing the price to go down. How would you protect yourself against his retirement, assuming you don't want to s..
Explain why purchasing a high-growth mutual fund : Explain why purchasing a high-growth mutual fund can be a worse investment than taking out a second mortgage on a home and investing in the market index.
Investment-annual rate of return : Suppose you are committed to owning a $197,000 Ferrari. If you believe your mutual fund can achieve a 11 percent annual rate of return and you want to buy the car in 8 years on the day you turn 30, how much must you invest today?
Looking glass self : 1. Provide examples of the ways in which the "looking glass self" is evident in human behavior.2. Suggest which "others" can have the most influence on how individuals actually see themselves.3. Apply Cooley's Looking Glass Self to your own life. You..
No one gets through life alone : No one gets through life alone. To some extent, we are all products of our environments. We learn from our families, schools, and cultures. Every person has to face severe challenges and conquer obstacles. How we face our challenges depends on how we..
First putting green championship was held : In 1895, the first Putting Green Championship was held. The winner’s price money was $240. In 2014, the winner’s check was $1,400,000. What was the percentage in cream per year in the winner's check over this period? If the winner’s prize increases a..
Gender identity we are socialized at every stage : Assignment 3: Gender Identity We are socialized at every stage in life to conform to our gender identity. Societal reinforcement of tendencies of gender identity is relentless. For example, in hospitals, little girls are wrapped in pink and little bo..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected capital gains yield-current yield

Bond P is a premium bond with a 12 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 9 percent, and have five years to maturity. Assume these bonds have a face value of $..

  Continuing to make payments at the original interest rate

A home identical to yours in your neighborhood, sold last week for $150,000. Your home has a $120,000 assumable, 8% mortgage (compounded annually) with 30 years remaining. An assumable mortgage is one that the new buyer can assume at the old terms, c..

  Calculate the profitability of the chester company account

A company believes it can sell 5,000,000 of its proposed new optical mouse at a price of $10.50 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..

  Understand cumulative voting and plans to cast

Mr. Michaels controls proxies for 40,000 of the 75,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining 35,000 shares. There are seven board members to be elected and cumulative voting rules apply..

  Calculate the call value of owens corning warrants

When Owens Corning emerged from bankruptcy in 2006, the debt holders became the sole owners of the company. But the old stockholders were not left entirely empty handed. They were given warrants to buy the new common stock at any point in the next se..

  Capital investment proposals

The division managers of Chester Construction Corporation submit capital investment proposals each year for evaluation at the corporate level. Typically, the total dollar amount requested by the divisional managers far exceeds the company’s capital i..

  What is the present value

What is the present value of $ 100000 received?

  What is the annual interest rate

Company expects to use $1,600,000 short term credit bus wants a $3,000,00 line of credit in case of unexpected events. LIBOR is 4% and the loan is priced at LIBOR plus 2.5% with Commitment fee of 0.3% on the unused portion of the line. Bank also requ..

  Sustainable growth rate to equal to internal growth rate

Which one of the following will cause the sustainable growth rate to equal to internal growth rate?

  You are working with a company selling building material to

you are working with a company selling building material to builders. you predict the quarterly purchases of customers

  What was the investors geometric average return

An investor experienced returns of 8%, 6%, 4%, 10%, and -2% in five consecutive years. What was the investor's geometric average return over the five year period?

  Investigating automating process-cash operating costs

The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $30,000, would be replaced by a new machine. The new machine would be purchased for $438,000 and would have a 6 year useful ..

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