Kirk Van Houten, who has been married for 23years, would like to buy his wife an expensive

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Kirk Van Houten, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $12,000 in seven years. Kirk currently has $4,510 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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