Question: 1, If there is a 20% chance we will get a -2% return, a 30% chance of getting a 6% return, and a 50% chance

1, If there is a 20% chance we will get a -2% return, a 30% chance of getting a 6% return, and a 50% chance of getting 17% return. What is the expected rate of return for the investment?

Please round your answer to the fourth decimal. If your answer is 1.11%, then you should input "0.0111".

2, Assume your grandparents deposit $268,402 into a bank account for you and will allow you to withdraw $71,275 at the end of every year, starting the end of this year. The bank pays an annual interest rate of 4.75% compounded annually. How many years can you withdraw the money and leave the account completely empty after the last withdraw?

Please round your answer to the second decimal. E.g. 1.50 (years).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Harding Plastic Molding Company On January 11, 2003, the finance committee of Harding Plastic Molding Company (HPMC) met to consider eight capital budgeting projects. Present at the meeting were...

1. If there is a 20% chance we will get a -3% return, a 30% chance of getting a 5% return, and a 50% chance of getting 15% return. What is the standard deviation for the investment? *Hint: You should...

If there is a 20% chance we will get a 16% return, a 30% chance of getting a l4% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate of...

17) LCB wants to install a super paper-recycling machine. There are two machines to choose from Type A costs $290 to buy and lasts for 6 years. Type B costs $490 to buy and lasts for 9 years. Type A...

You are evaluating a stock return. You are expecting the stock return to change based on economy status. You are expecting that the probability of recession is 20%, normal is 30% and boom is 50%, and...

180200 130200100 1802001004 180200100 Butter, Inc.'s return on equity is 17% and management retains 75% of earnings for investment purposes. Based on this information, what will be the firm's growth...

1) If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate...

There is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return. The standard deviation for the...

If there is a 20% chance we will get a 16% return, a 30% chance of getting a 17% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate of...

Suppose that the equivalent circuit shown in Figure 3.24 accurately represents a real inductor. A constant current of 50 mA flows through the inductor, and the voltage across its external terminals...

Fitting new products to the channel members assortments may sometimes be a problem. When might this be the case?

Which of the following correlation coefficients will produce the most diversification benefits? Multiple Choice 0 . 4 - 0 9 0 . 0

What item is probably the least useful analyzing financial statements?

Understand the role of internal marketing and communications.

Know how to motivate and energize service employees so that they will deliver service excellence and productivity.

Know how to integrate teams across departments and functional areas.