What annual average interest rate

Assignment Help Financial Management
Reference no: EM131577501

Uncle Fred left you $126,000 in his will. You don't need the money now, but figure you could take this windfall, invest it somewhere, and then years from now when you are fed up with the rat race, you can quit you job and go live on a beach somewhere and live life like a Jimmy Buffett song. You figure that you will need $494,000 to be able to do that in about 27 years. What annual average interest rate will you have to earn on your funds over time in order to be able to afford to live that dream? (show your answer in decimal form to four places, e.g., if you get 12.34% then input 0.1234)

Reference no: EM131577501

Questions Cloud

Calculate the variable and fixed overhead rates : Using the direct method, determine the budgeted overhead costs for Machining and Finishing. Calculate variable and fixed overhead rates for each department
Fundamental analysis of valuation of common stock : What you have learned about Fundamental Analysis of Valuation of common stock.
Nominal rate of return had you not been leveraged : What would have been your nominal rate of return had you not been leveraged?
Calculate the coefficient of determination : Calculate the coefficient of determination, R^2 = 1- ESS/TSS and comment on its value. Estimate this regression by Ordinary Least Squares (OLS) method.
What annual average interest rate : What annual average interest rate will you have to earn on your funds over time in order to be able to afford to live that dream?
Financial statement and operating indicator analyses : What are the major problems that one encounters in performing financial statement and operating indicator analyses?
What are they now trying to create : They are now breaking down the work packages into smaller increments. What are they now trying to create?
Calculate the rate of inflation in the united kingdom : In 1973, the GDP deflator was 15.6 in the United Kingdom and 34.3 in the United States (with 1995 = 100). In 2001, it was 116.1 in the United Kingdom.
What is the liability recorded in the financial statements : ABC Ltd grants 20 share appreciation rights to each of its 500 employees on 1 January 20X1. What is the liability recorded in the financial statements for year

Reviews

Write a Review

Financial Management Questions & Answers

  Security with no maturity-default or liquidity risk

what is the yield on a 4-year security with no maturity-default or liquidity risk?

  Changed tax laws to allow banks to utilize the tax loss

In September? 2008, the IRS changed tax laws to allow banks to utilize the tax loss carryforwards of banks they acquire to shield their future income from taxes

  What should be the required rate of return

The market risk premium is 5% then according to the Capital Asset Pricing Model, what should be the required rate of return?

  The expected return on the market

The Stock of Big Joes has a beta of 1.48 and an expected return of 12.50 percent. The risk-free rate of return is 5 percent. What is the expected return on the market?

  The linear relation between an assets expected return

The linear relation between an assets expected return and its Beta coefficient is the:

  Transfer arrangements would ensure that maxwells assets

Which of the following transfer arrangements would ensure that Maxwell’s assets will be transferred to Jane at Maxwell’s death?

  Describe implications of managing health information

Do you believe that health information technology should be managed as a service, cost, profit, or investment center? Support your opinion with at least two resources from outside the required readings.

  Calculates the annuity payment

You currently have 25 and want to retire at the age of 65. As a complement to other sources of retirement, you could deposit $ 3,000 at the end of each year in an IRA. This financial instrument would earn 9.75% over the next 40 years. a) How much mon..

  Economic forecasting staff has developed probability

Merrill Finch's economic forecasting staff has developed probability estimates for the state of the economy, and its security analysts have developed a sophisticated computer program, which was used to estimate the rate of return on each alternative ..

  What was the standard deviation of crash-n-burn returns

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. a) What was the arithmetric average return on Crash-n-Burn's stock over the five year per..

  Credit default swaps contributed to the crisis

Credit default swaps contributed to the crisis in all the following reasons except:

  What is weighted average cost of capital for firm

The current stock price for a company is $33 per share, and there are 4 million shares outstanding. The beta for this firms stock is 1.1, the risk-free rate is 4.9, and the expected market risk premium is 5.8%.  If the corporate tax rate is 37%, what..

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