Investing question

dreamer

New member
Joined
Oct 25, 2011
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2
I need a 15% annual return on my investment. My expected rate of return is 8.2%. My total amount in 10 years time will be 262.29. The price of the stock I want to purchase today is 120.00. The price of the stock needs drop to 46% which equals 64.83. I want to know how to figure out the 46% decline that gives the actual price (64.83) I need to pay in order to get my 15% annual return.

[FONT=&quot]Thanks, dreamer [/FONT]
 
You seem to be complicating something simple; your problem is simply:
at 15% annual, what is the Present Value of 262.29 due in 10 years?

262.29 / 1.15^10 = 64.83

If you're confused, simply google "present value".

Thanks for the help!!!
 
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