Tim paid $250 per month into his 401K retirement plan. After 30 years, he had accumulated $500,000. What is the average annual rate of increase?"

Ajax Manufacturing is expected to pay a dividend of $8 per share next year. The dividend growth rate is expected to continue to be 3%. Required rate of return is 14%.

What should be the current market price per share?

What is the annual rate of return if you purchase the stock at $65?

Step 1. Identify given
Monthly investment $250
No. of years of investment 30
No. of months of investment 360 =30x12
Amount accumulated $500,000

Step 2. Compute the monthly interest rate by using Goal seek
=$250*(((1+r)360)-1)/r $500,000.00
force balance this equation to $500,000

Monthly interest rate 0.79%

Step 3. Multiply the number computed in Step 2 by 12
Annual interest rate 9.42%