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1. Problem 5.03 (Finding the Required Interest Rate) Your parents will retire in 26 years. They currently have $200,000 saved, and they think they will
1. Problem 5.03 (Finding the Required Interest Rate) Your parents will retire in 26 years. They currently have $200,000 saved, and they think they will need $1,900,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. Attempts Keep the Highest / 4 4. Problem 5.12 (Effective Rate of Interest) Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $700 and promise to pay back $735 at the end of 1 year. % b. You lend $700 and the borrower promises to pay you $735 at the end of 1 year. % c. You borrow $79,000 and promise to pay back $432,412 at the end of 15 years. % d. You borrow $8,000 and promise to make payments of $2,219.30 at the end of each year for 5 years. %
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