What annual rate of interest must you earn on investment

Assignment Help Financial Management
Reference no: EM131967697

Assume the total cost of a college education will be $415,000 when your child enters college in 18 years. You presently have $69,000 to invest.

What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Annual rate            %

Reference no: EM131967697

Questions Cloud

Calculate gross profit margins for tickets and concessions : Calculate gross profit margins for tickets and concessions for all three years. Calculate an overall gross profit margin for LA Theatres Inc. for all three year
What is the present value of liability : If the relevant discount rate is 8 percent, what is the present value of this liability?
What is the diddy cost of equity : Diddy Corp. stock has a beta of 1.4, the current risk-free rate is 6 percent, and the expected return on the market is 15.00 percent.
By what percent will the price of the bonds increase : These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation.
What annual rate of interest must you earn on investment : What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
What is the company wacc : Suppose the most recent dividend was $4.80 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average.
Examination paper of information technology : Could you please provide me the answers to the Examination "Examination Paper of Information Technology" for IIBM Institute Business Management.
Walman beyond the split-off point : Based solely on a relevant cost analysis, which of the three products should be manufactured by Walman beyond the split-off point?
The cost of preferred stock is : Common stock. The firm's common stock is currently selling for $50 per share. The firm expects to pay cash dividends of $5 per share next year.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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