Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask Rakhi Vasavada Your Own Question

Rakhi Vasavada, Financial and Legal Consultant

Category: Finance

Satisfied Customers: 3825

Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Type Your Finance Question Here...

Rakhi Vasavada is online now

Gina Dare, who wants to be a millionaire, plans to retire at

Customer Question

Gina Dare, who wants to be a millionaire, plans to retire at the end of 40 years. Gina’s plan is to invest her money by depositing into an IRA at the end of every year. What is the amount that she needs to deposit annually in order to accumulate $1,000,000? Assume that the account will earn an annual rate of 11.5%. Round off to the nearest $1. a. $1,497 b. $5,281 c. $75 d. $3,622

2. If you want to have $1,200 in 27 months, how much money must you put in a savings account today? Assume that the savings account pays 16% and it is compounded monthly (round to the nearest $10). a. $910 b. $890 c. $880 d. $840

3. Three years from now, Barbara Waters will purchase a laptop computer that will cost $2,250. Assume that Barbara can earn 4.25% (compounded quarterly) on her money. How much should she set aside today for the purchase? Round off to the nearest $1. a. $1,250 b. $900 c. $1,866 d. $1,982

4. Caldwell, Inc. sold an issue of 30-year, $1,000 par value bonds to the public. The bonds carry a 13.85% coupon rate and pay interest semiannually. It is now 12 years later. The current market rate of interest on the Caldwell bonds is 8.45%. What is the current market price (intrinsic value) of the bonds? Round off to the nearest $1. a. $751 b. $1,494 c. $1,220 d. $976

5. MI has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the bond’s price. a. $956.42 b. $1,000.00 c. $1,168.31 d. $1,213.19

6. What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,607? Round your answer to the nearest whole percent and assume annual coupon payments. a. 5% b. 14% c. 12% d. 9.6%

7. The XYZ Company, whose common stock is currently selling for $50 per share, is expected to pay a $2.00 dividend in the coming year. If investors believe that the expected rate of return on XYZ is 14%, what growth rate in dividends must be expected? a. 5% b. 14% c. 10% d. 6%

8. Green Company’s common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate, what is the stock’s expected rate of return? a. 4.08% b. 8.00% c. 12.00% d. 8.80%

9. McMillen House of Books recently paid a $3 dividend on its preferred stock. Investors require a 6% return on the stock. The stock is currently selling for $45. Is the stock a good buy? (Show work!) a. Yes, as it is undervalued $5. b. Yes, as it is undervalued $10. c. No, as it is overvalued $5. d. No, as it is overvalued $10.

10.. Style Corp. preferred stock pays $3.15. What is the value of the stock if your required rate of return is 7.5% (round your answer to the nearest $1, and assume no transaction costs)? a. $33 b. $23 c. $42 d. $37

Gina Dare, who wants to be a millionaire, plans to retire at the end of 40 years. Gina's plan is to invest her money by depositing into an IRA at the end of every year. What is the amount that she needs to deposit annually in order to accumulate $1,000,000? Assume that the account will earn an annual rate of 11.5%. Round off to the nearest $1. a. $1,497 b. $5,281 c. $75 d. $3,622

2. If you want to have $1,200 in 27 months, how much money must you put in a savings account today? Assume that the savings account pays 16% and it is compounded monthly (round to the nearest $10). a. $910 b. $890 c. $880 d. $840

3. Three years from now, Barbara Waters will purchase a laptop computer that will cost $2,250. Assume that Barbara can earn 4.25% (compounded quarterly) on her money. How much should she set aside today for the purchase? Round off to the nearest $1. a. $1,250 b. $900 c. $1,866 d. $1,982

4. Caldwell, Inc. sold an issue of 30-year, $1,000 par value bonds to the public. The bonds carry a 13.85% coupon rate and pay interest semiannually. It is now 12 years later. The current market rate of interest on the Caldwell bonds is 8.45%. What is the current market price (intrinsic value) of the bonds? Round off to the nearest $1. a. $751 b. $1,494 c. $1,220 d. $976

5. MI has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the bond's price. a. $956.42 b. $1,000.00 c. $1,168.31 d. $1,213.19

6. What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,607? Round your answer to the nearest whole percent and assume annual coupon payments. a. 5% b. 14% c. 12% d. 9.6%

The XYZ Company, whose common stock is currently selling for $50 per share, is expected to pay a $2.00 dividend in the coming year. If investors believe that the expected rate of return on XYZ is 14%, what growth rate in dividends must be expected? a. 5% b. 14% c 10% d. 6%

8. Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate, what is the stock's expected rate of return? a. 4.08% b. 8.00% c. 12.00% d. 8.80%

9. McMillen House of Books recently paid a $3 dividend on its preferred stock. Investors require a 6% return on the stock. The stock is currently selling for $45. Is the stock a good buy? (Show work!) a. Yes, as it is undervalued $5. b. Yes, as it is undervalued $10. c. No, as it is overvalued $5. d. No, as it is overvalued $10.

10.. Style Corp. preferred stock pays $3.15. What is the value of the stock if your required rate of return is 7.5% (round your answer to the nearest $1, and assume no transaction costs)? a. $33 b. $23 c. $42 d. $37

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.

JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.

Web sites like justanswer.com/legal ...leave nothing to chance.

Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.

Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.

I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...T.G.WMatteson, IL

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.GPHesperia, CA

Meet The Experts:

Rakhi Vasavada

Financial and Legal Consultant

Satisfied Customers:

2073

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years