Question
You are saving money for a down payment on a house. Suppose you want to have total savings of $20,000 in 10 years time and
You are saving money for a down payment on a house. Suppose you want to have total savings of $20,000 in 10 years time and you have currently $5,000. What annual interest rate do you need to earn on your initial investment, assuming you contribute no additional savings?
a. 10.0%
b. 18.5%
c. 12.5%
d. 15.0%
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Fundamentals of Financial Management
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