What is the minimum rate you would you need to earn

Assignment Help Finance Basics
Reference no: EM133251871

Question - You and your partner have $100,000 to invest for your retirement in 20 yearsYou are conservative and want to invest the funds in an investment earning 5% interest compounded annually for 20 years. Your partner wants to invest the funds in a riskier investment which is expected to earn % compounded annually over the next 5 years. At that time, you would have to find another investment for the remaining 15 years. What is the minimum rate you would you need to earn on the amount accumulated at the end of 5 years, to convince you to choose your partner's option?

Reference no: EM133251871

Questions Cloud

Create the game matrix of this two-person game : In a small town two retailers A and B are competing for business. Create the game matrix of this two-person game
How many contracts should you buy or sell : If there are 92 days from today to the December expiration, what should be the fair futures price today? How many contracts should you buy or sell
How much can you spend on a house : How much can you spend on a house if the APR, or stated, interest rate is 6% (compounded monthly) on a 25 year mortgage
What was your annual rate of return : Unfortunately, the best offer you received was $5,200, losing money on your investment. What was your annual rate of return
What is the minimum rate you would you need to earn : At that time, you would have to find another investment for the remaining 15 years. What is the minimum rate you would you need to earn
What is the holding period return for this investment : Question - Suppose you pay 9,700 for a 10,000 par Treasury bill maturing in 3 months. What is the holding period return for this investment
What is the price of the bond : A R1,000 par value bond makes annual coupon payment of R55. If it offers a yield to maturity of 5.5 percent, what is the price of the bond
How much assets will be added to meet the firm new afn : Asset size is P 100M generating gross sales of P 20M for the past year. How much assets will be added to meet the firm new AFN
What is the value of this firm : The company also has $2,600 of debt with a coupon rate of 5 percent. The debt is selling at par value. What is the value of this firm

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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