Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Dan would like to save $2,000,000 by the time he retires in 40 years and believes he can earn an annual return of 8%. How much does he need to invest today to achieve his goal?

Show all work.

a. $136,000

b. $92,000

c. $134,000

d. $625,000

e. $92,060

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91804444
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

Consider the balance sheet in millions of for first

Consider the balance sheet (in millions of $) for First Integrated Bank: FY 2017 AMOUNT DURATION ASSETS  $790 MILLION 7.5 YEARS LIABILITIES  $650 MILLION 1.5 YEARS What is the FIB's duration gap? 4.9 years 5.4 years 6.0 ...

What is inventory and why is it important for your business

What is inventory and why is it important for your business, investors or potential lenders?

With auto loans it is common for buyers to trade in their

With auto loans, it is common for buyers to trade in their cars after the outstanding principal on the car loan exceeds the re-sale value of the used car. After which loan payment will it be profitable for you to trade-i ...

Ultra petroleum has earnings per share of 156 and a pe

Ultra Petroleum has earnings per share of $1.56 and a P/E ratio of $32.48. What is the stock price?

Great start to our discussion on the cost of capital

Great start to our discussion on the Cost of Capital. Basically it is the cost of all financing for a business. As a manager would we want the cost of capital to be lower or higher? Why

A bond that makes payments in a certain currency contains

A bond that makes payments in a certain currency contains the risk of holding that currency and so is priced according to the yields of similar bonds in that currency. True or false?

How does the bid-ask spread affect market orders vs limit

How does the bid-ask spread affect market orders vs limit orders? (Does it related to a narrow/wide spread?)

Gracchus inc stock is selling for 4181 a share based on a

Gracchus, Inc. stock is selling for $41.81 a share based on a 8.2 percent rate of return. What is the amount of the next annual dividend if the dividends are increasing by 3.8 percent annually?

A company stock is paying 5 in dividends with a 3 growth

A company stock is paying $ 5 in dividends, with a 3 % growth rate. The U.S. Treasury bond yield is 1 % (the risk free rate). The stock sells for $56. What is the implied risk premium?  Round your answer to two decimal p ...

Every year for the past five years flights r us has paid a

Every year for the past five years, Flights 'R Us has paid a constant dividend of $2.50 per share. Next year and every year after, Flights 'R Us will increase the dividend rate 2.5% per year. If investors require a 15% r ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As