Why results are different at the different interest rates

Assignment Help Finance Basics
Reference no: EM13256305

1. How much would $1,000,000 due in 100 years be worth today if the discount rate was 5%? if the discount rate was 10%. Discuss how and why the results are different at the different interest rates.

2. If you wanted to have $1,000,000 in savings at retirement, how much would you need to save each year over the next 30 years if you could earn 5% annually on your savings?

 

Reference no: EM13256305

Questions Cloud

How much should you pay for the bond : Assume that you have the opportunity to buy a 30 year, zero coupon, $60,000 bond. You determine that the yield on a comparable bond (comparable in terms of risk, liquidity, etc.) is 4.0%. How much should you pay (maximum) for the bond? Assume an e..
What is the distance above the victims arm : A blood transfusion is being set up in an emergency room for an accident victim. What is the distance h above the victim's arm where the level of the blood in the transfusion bottle should be located
How much would that 22 year old bond sell for today : Assume that the Treasury sold a $100,000, 30 year bond exactly twenty two years ago. That bond carried a coupon rate of 10.5%. Also assume that today Treasury security maturing in the five to ten year period yield 2.0%. How much would that 22 year..
Which of the following assets is worth the most : Which of the following assets is worth the most? Which is worth the least?
Why results are different at the different interest rates : How much would $1,000,000 due in 100 years be worth today if the discount rate was 5%? if the discount rate was 10%. Discuss how and why the results are different at the different interest rates.
What is the total energy stored in the electric field : A 1.50cm diameter parallel plate capacitor with a spacing of 0.600mm is charged to 400V. What is the total energy stored in the electric field
Determine the weight of the rod : On a part-time job, you are asked to bring a cylindrical iron rod of density 7800kg/m3, Calculate the weight of the rod, w
Calculate the present value at each interest rate : Land is already owned. The price of a new is windmill is $150,000. A minimum of fifty windmills are needed to achieve desired efficiency compared to the current coal burning method.
Mixture of hydrocarbons is obtained stream-bubble point : The following mixture of hydrocarbons is obtained as one stream in a petroleum refinery on a mole basis: 5% ethane, 10% propane, 40% n-butane, 45% isobutane. Assuming the shortcut K-ratio model:

Reviews

Write a Review

Finance Basics Questions & Answers

  Domestic firms in the u.s. market

Empirical evidence shows that new issues of equity by domestic firms in the U.S.

  Dupont formula for southwest airlines

Briefly discuss the impact of the changes in asset turnover and financial leverage on ROE over the the three years.

  Calculate of abnormal return

Here are alphas and betas for Intel and Conagra for the 60 months ending April 2009. Alpha is expressed as percent (%) per month.

  Sales is expected to be carried out without any expansion

Determine Upton's projected external capital requirement if the increase in sales is expected to be carried out without any expansion of fixed assets.

  Revise the pricing strategy

As a advertiser, when do you think it is right to go against the pricing norms of your company? Would you be comfortable making the case to executives.

  Annuity and dividends for common stocks

Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10-year annuity a 12 percent int..

  Solving international debt problem

Determine how might debt equity swaps help to solve the international debt problem? Point out the advantages and disadvantages from the viewpoint of the debtor country.

  Compute sales to earn present level of profit

Compute. (i) New BEP (ii) Sales to earn present level of profit (iii) Sales to earn expected profit on proposed investment (iv) Maximum profit potential after tax and plant expansion

  Explain finding required rate of return using capm formula

Explain Finding required rate of return using CAPM formula and Calculate the tax liability on the assets

  Factors which affecting portfolio returns

As a manager of a large, broadly diversified portfolio of stocks and bonds you realized that changes in certain microeconomic variables might directly affect the performance of your portfolio.

  Foreign currency transaction-interest-bearing note

On July 1, 2009, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2010. The note is denominated in euros.

  Determine authorized stock of a corporation

Sims Corporation originally issued 2,000 shares of $10 par value common stock for $60,000. Sims subsequently purchases 200 shares of treasury stock for $27 per share and sells the 200 shares of treasury stock for $29 per share.

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