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    nivaprincess's Avatar
    nivaprincess Posts: 2, Reputation: 1
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    #1

    Jan 31, 2012, 12:49 AM
    Annual rate of increase
    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?"
    nivaprincess's Avatar
    nivaprincess Posts: 2, Reputation: 1
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    #2

    Feb 9, 2012, 03:10 AM
    Ajax Manufacturing
    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?
    kordooni's Avatar
    kordooni Posts: 1, Reputation: 1
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    #3

    Feb 21, 2012, 07:13 PM
    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%
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