### What interest rate must you earn to achieve your goal

Assignment Help Financial Management
##### Reference no: EM131027103

1. You have \$1,003 today, and want to double your money in 6 years. What interest rate must you earn to achieve your goal?

Enter rate in percents, accurate to two decimal places.

2. The house you want to buy costs \$277 thousand. You plan to make a cash down payment of 10 percent, and borrow the rest in a 30 year mortgage at 3.49 percent APR. What will be the amount of your monthly mortgage payment?

### Write a Review

#### Sustainable growth rate assuming ending equity is relevant

Scooze Inc. projects a rate of return of equity of 20%. Management plans to pay 70% of earnings as dividends. Earnings this year will be \$3.00 per share, and investors expect a 12% rate of return on the stock. Calculate the sustainable growth rate as..

#### Ending inventory and cost of goods sold under FIFO method

ABC company has the following record for inventory: On June 1, beginning inventory was 14 units @ \$42, a purchase was made June 2 for 4 units @ \$69, a sale was made on June 7 for 7 units @ \$111, and a final sale was made on June 13 for 5 units at \$11..

#### Open market operations

Suppose the Federal Reserve increases deposits at financial institutions by \$59 billion through its open market operations. If the reserve requirement for all deposits is 8%, what is the maximum impact the Fed's actions can have on total deposits?

#### Long-term borrowing to meet working capital needs

Compare and contrast the advantages and disadvantages of short- and long-term borrowing to meet working capital needs.

#### What was your total dollar return on this investment

Suppose you bought a 8 percent coupon bond one year ago for \$950. The bond sells for \$1,005 today. Assuming a \$1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on th..

#### Credit default swaps contributed to the crisis

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

#### Financial analysis comparison

?Financial Analysis Comparison - I need to receive information on both companies - Data Requested The Coca-Cola Company.

#### Compute the present value of a one-time payment

Compute the present value of a one-time payment of \$1,000 paid in four years using the following discount rates: 2.0% in year 1, 2.25% in year 2, 4% in year 3, and 4.5% in year 4. Present Value: \$

#### What is the net profit or loss for one contract

What is the net profit or loss for one contract? What would the spot rate need to be at the time the option is exercised for the speculator to break even? What is the net profit per unit to the seller of this option if exercised now?

#### Contribution to your retirement account

You have just made your first \$5,700 contribution to your retirement account. Assume you earn a return of 13 percent per year and make no additional contributions. What will your account be worth when you retire in 38 years?What if you wait 10 years ..

#### Investment in subsidiary under the cost method

On January 1, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for \$316,000. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of \$40,000, \$120,000, and \$190,000, respectively. Any rem..

#### Parties holds the risk of loss for the damage caused to car

Timmy purchased a car from his local dealership, SparklerCars. However, since the car was not available in the color that Timmy favored, the sales contract stipulated that Timmy could immediately pick up the car from a nearby warehouse it was housed ..