Mutual fund investment is expected to earn

Assignment Help Financial Management
Reference no: EM13725528

A mutual fund investment is expected to earn 8% per year for the next 25 years. If inflation will average 4% per year during this 25-year period of time, what is the compounded value (in today's dollars) of this savings vehicle when $9,000 is invested now?

Reference no: EM13725528

Questions Cloud

Firm increases its investment in current assets : Which of the following actions would decrease a firm's liquidity? Which of the following would normally occur if a firm increases its investment in current assets?
Broussard skateboards sales are expected to increase : Broussard Skateboard's sales are expected to increase by 25% from $7.2 million in 2013 to $9.00 million in 2014. Its assets totalled $6 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pro..
Identify potential domestic and international sources : Identify potential domestic and international sources of financing for your global venture. Include at least two possible financial institutions within your chosen region
Personality theory that justifiably aligns : Choose a personality theory that justifiably aligns with your perspective. Then, in a two- to three-page paper (not including title and reference pages), examine its origin, principles, validity, and application. Additionally, assess how the cul..
Mutual fund investment is expected to earn : A mutual fund investment is expected to earn 8% per year for the next 25 years. If inflation will average 4% per year during this 25-year period of time, what is the compounded value (in today's dollars) of this savings vehicle when $9,000 is investe..
Average does it take the firm to sell an inventory item : Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sel..
How radical were the responses to the stamp act : In 1765, Parliament passed the infamous Stamp Act. How oppressive was the Stamp Act? How Radical were the responses to the Stamp Act? Was it the beginning of the American Revolution? Why or why not?
How much can sales increase : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
How you think your european friends back home : Thoroughly explain and analyze: What each object is, How you think your European friends back home will react to each object, and why Why it is culturally important.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculations if investors were ahead after advance or not

From October 2007 to March 2009, the market declined about 57%. It then advanced in 1 year about 69%. Determine by calculations if investors were ahead after the advance or not?

  Foreign investment in india

The project is to study the changing trends of the Indian Markets due to the foreign investments, in particular FIIs, its impact, being the single largest investor class in the Indian Markets with respect to current issues.

  Determine how large must each of the 5 payments be

To get the money for this payment, you will make 5 equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 8% with quarterly compounding.

  Explain what does the market believe will be the stock price

The dividend is expected to grow at some constant rate g, the stock currently sells for $33 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e.,what is P^3)?

  Fixed-rate mortgage

You have decided to buy a house. You can get a mortgage rate of 5 percent, and you want your payments to be $1,540 or less. How much can you borrow on a 15-year fixed-rate mortgage?

  Negative growth stock

Questions related to Negative growth stock

  What is the probability that this stock

A stock had returns of 14 percent, 26 percent, and 8 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 43.51 percent in any one given year?

  Saven travel corporation is considering several investment

saven travel corporation is considering several investment opportunities in order to diversify its operations. mr.

  The impact of major eents from the recent financial

The impact of major eents from the recent financial crisis on credit default swaps

  Maturity quoted at discount yield

What is the price of a U.S. Treasury bill with 56 days to maturity quoted at a discount yield of 1.20 percent? Assume a $1 million face value. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Calculate the sample size

Determine the sample size needed to detect an increase of 5 points. Let alpha = 0.02 and beta = 0.05. Calculate the sample size

  Define what is the coupon rate for a bond

What is the coupon rate for a bond (face value $1,000) with five years until maturity, a price of $957.88, and a yield to maturity of 6%? What is the current yield for this bond?

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