Question: You pay $4,000 for a security that you expect will be worth $30,000 exactly 8 years from now. The security will make no intermediate payments.

You pay $4,000 for a security that you expect will be worth $30,000 exactly 8 years from now. The security will make no intermediate payments.

What is the annualized return on this security (3+ decimals)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

CAGR Ending Value Beginning Value 1 N... View full answer

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!

Q:

You invest $6,000 You wish to put money into a savings account to earn enough to make a down payment on a house in 10 years. You pay $6,000 for a security that you expect will be worth $25,000...

Q:

You have completed your first meeting with Harper and Riley Evans. You are confident that you now have most of the information you will need to prepare a comprehensive financial plan for them. Beyond...

Q:

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Q:

The question is extended on this website...

Q:

I don't know where to input the answers. im keeping getting confused John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha In 2020, John worked as a...

Q:

You pay $4,000 for a security that you expect will be worth $30,000 exactly 8 years from now. The security will make no intermediate payments. What is the annualized return on this security (3+...

Q:

Southwest Bankers, Inc. (not it's real name) through its subsidiaries, provides financing for industrial and commercial properties, for interim construction related to industrial and commercial...

Q:

See clearer questions below A Intro Note: Please pay close attention to the exact wording. This is not a trick question, but the wording is important. Part 1 " Attempt 1/1 for 10 pts. The formula ( c...

Q:

Hi, i just need the highlighted ones. Thank you! CHAPTER 1 Understanding Personal Finance 33 LET'S TALK ABOUT IT 1. Economic Growth. What tpes of federal government Federal Reserve. Describe some...

Q:

please do it in 30 minutes please urgently... I'll give you up thumb definitely Problem 5 You have until 12:50 PM to complete this assignment. Intro You pay $4,000 for a security that you expect will...

Q:

Joe Kang is an owner and audit partner for Han, Kang & Lee, LLC. As the audit on Frost Systems was reaching its concluding stages on January 31, 2016, Kang met with Kate Boller, the CFO, to...

Q:

The breaking strengths of cables produced by a certain manufacturer have a mean, , of 1850 pounds, and a standard deviation of 60 pounds. It is claimed that an improvement in the manufacturing...

Q:

What is the earliest age at which one would not give DTap to a child but rather would give Td or Tdap?Group of answer choices 1 year old 2 years old 3 years old 7 years old

Q:

1. Calculate E (standard cell potential), E (cell potential), and AG (free energy change) for the following cell reaction. Would the following reaction proceed spontaneously under the conditions...

Q:

Numerical question : What is the effective stress at point A? A static force Fof 50,000 lbf is applied to the steel rod OAB the negative X-direction. Rod OAB is mounted to a wall, and can be assumed...

Q:

VDD=15V, R1=R2=R3=500k2, RD=1kN, RSR=5002, unCoxW/L 1mA/V2 and VT-1V %3D Find the collector currents and terminal voltages of the M1 and M2. (M1, M2 NMOS)

Q:

MedEquip, a medical services company with 500 employees, has experienced an extensive business downturn, and a layoff is necessary. MedEquip managers expect a layoff to be problematic because the...

Q:

5. Use e - 6 definition and show that the function if (r, y) # (0,0) 2 + y?" f (r, y) = 0, if (r, y) = (0,0). is continuous at the origin. (15 pt)

Q:

Use the square root property to solve the equation . You may need to factor an expression.

Q:

Assuming a 1-year money market account investment at 1.5 percent (APY), a 2.5 percent inflation rate, a 25 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate...

Q:

Calculate the after-tax return of a 4.65 percent, 20-year, A-rated corporate bond for an investor in the 10 percent marginal tax bracket. Compare this yield to that of a 3.25 percent, 20-year,...

Q:

1. Identify the stage of the life cycle that best describes Cory and Tisha today. What important financial planning issues characterize this stage? 2. Based on the issues identified in Question 1 and...

Q:

Suppose that the following data were obtained by an investigator studying the influence of estrogen injections on change in the pulse rate of adolescent chimpanzees: a. What are the factors in this...

Q:

A researcher was interested in determining risk factors for high blood pressure (hypertension) among women. Data from a sample group of 680 women were collected. The following table gives the...

Q:

The following set of questions relates to using Poisson regression methods to analyze data from an in vitro study of human chromosome damage. In this study, using Poisson regression is appropriate...