What annual interest rate must they earn to reach their goal

Assignment Help Financial Management
Reference no: EM13810299

Your parents will retire in 13 years. They currently have $300,000, and they think they will need $1 million 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: EM13810299

Questions Cloud

Find the future values of the ordinary annuities : Find the future values of the following ordinary annuities:
Understanding the patient intake process : Understanding the Patient Intake Process
What is the present value of a perpetuity : What is the present value of a perpetuity of $900 per year if the appropriate discount rate is 10.91%? Round your answer to the nearest cent. If interest rates in general were to double and the appropriate discount rate rose to 21.82%, what would its..
What is the future value-ordinary annuity : What is the future value of a 3%, 5-year ordinary annuity that pays $650 each year? Round your answer to the nearest cent. If this were an annuity due, what would its future value be? Round your answer to the nearest cent.
What annual interest rate must they earn to reach their goal : Your parents will retire in 13 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
What is the bonds yield to maturity : You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and has an 7% annual coupon. The bond has a current yield of 5.74%. What is the bond's yield to maturity? Round your answer to two decimal places.
Components that can be included in graphical user interface : Radio buttons and check boxes are two of many different kinds of components that can be included in a graphical user interface. How are they similar and how are they different
Explain the network fundamental characteristics : Explain the network's fundamental characteristics and components. Evaluate the current network topology
What is the yield to maturity at a current market price : The YAX Corporation's bonds have 6 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. What is the yield to maturity at a current market price of $803? What is the yield to ma..

Reviews

Write a Review

Financial Management Questions & Answers

  What will be his after-tax yield to maturity

An investor purchases a 30-year municipal bond for $940. The bonds coupon rate is 9 percent and, it still had eighteen years remaining until maturity. If the investor holds the bond until it matures and collects the $1000 par value and his marginal t..

  Cost of capital is low-there is little demand for product

If the cost of capital is low and there is little demand for the product, would companies still expand their capital investment?

  Find the total payment

On September 1, 2009, Susan Chao bought a motorcycle for $26,000. She paid $1,200 down and financed the balance with a five-year loan at a stated annual interest rate of 6.8 percent, compounded monthly. She started the monthly payments exactly one mo..

  Observe a spot exchange rate

Suppose you observe a spot exchange rate of $2.00/£. If interest rates are 5% APR in the U.S. and 2% APR in the U.K., what is the no-arbitrage 1-year forward rate?

  Estimate the historical standard deviation

Estimate the historical standard deviation of google and compare the implied standard deviation with the historical standard deviation.

  Genesisrsquo newly established operations management team

genesisrsquo newly established operations management team decided to seek outside assistance in developing a long-term

  Firm has no debt outstanding and a total market value

If a firm has no debt outstanding and a total market value of $125,000. Earnings before interest and taxes are projected to be $10,400 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20% higher. Calcu..

  Same cost of equity and after tax cost of debt

Two companies have the same cost of equity and after tax cost of debt. What needs to be true regarding the cost of debt as compared to cost of equity for the WACC of the higher leverage firm to be higher than that of lower leverage firm? And why?

  Describe the basic features and characteristics of bonds

Describe the basic features and characteristics of bonds. How can bonds be secured? What is the difference between a callable bond and a convertible bond?

  As a speculator in the financial markets

As a speculator in the financial markets, you notice that for the last few minutes Swiss Francs are being quoted in New York at a price of $0.5849 and in Frankfurt at $0.5851.

  Assume that the risk-free rate and market risk premium

Assume that the risk-free rate is 4.5% and that the market risk premium is 3%. What is the required rate of return on a stock with a beta of 1.2? What is the required rate of return on a stock with a beta of 1.1? What is the required return on the ma..

  Production cost report

According to explanations provided in the Help section for the Production Cost Report, if (1) a company pays a PAT member a base wage of $19,000, a $50 quarterly bonus for perfect attendance, and annual fringe benefits of $3,200,

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