What annual interest rate must earn to reach the goal

Reference no: EM132028226

Question: Your parents will retire in 16 years. They currently have $330,000 saved, and they think they will need $1,550,000 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: EM132028226

Questions Cloud

Faulty e-commerce strategies : How might the value process frameworks described in companies avoid faulty e-commerce strategies?

What is the bond current yield : A $1,000 par value bond matures in four years and pays interest semi-annually. It is currently selling for 1,137.93 and has a coupon rate of 5.5%.

Valuation equation of lev and schwartz outline by flamholtz : How would you suggest proceeding? Would you agree with the valuation equation of Lev and Schwartz outline by Flamholtz, (1972)?

What is the amount and direction of the income taxes payable : What is the amount and direction (+ or -) of the income taxes payable adjustment to net income in the operating activities section of statement of cash flows

What annual interest rate must earn to reach the goal : Your parents will retire in 16 years. They currently have $330,000 saved, and they think they will need $1,550,000 at retirement.

Next coupon payment is due in exactly six months : What coupon rate do you need to? set? Assume that for both? bonds, the next coupon payment is due in exactly six months.

What is the initial cost of the plant if the company : The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

What amount must the parents now invest : If the trust fund will earn nominal annual discount rate of 12% compounded quarterly, what amount must the parents now invest in the trust fund?

How do you calculate the prepayment penalty : What is the expected borrowing cost? How do you calculate the prepayment penalty?

User Account

All Pages