Question
1. Your parents will retire in 29 years. They currently have $390,000 saved, and they think they will need $2,050,000 at retirement. What annual interest
1. Your parents will retire in 29 years. They currently have $390,000 saved, and they think they will need $2,050,000 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.
%
2. How long will it take $300 to double if it earns the following rates? Compounding occurs once a year. Round your answers to two decimal places.
-
5%.
year(s)
-
13%.
year(s)
-
19%.
year(s)
-
100%.
year(s)
3. What is the present value of a $500 perpetuity if the interest rate is 9%? If interest rates doubled to 18%, what would its present value be? Round your answers to the nearest cent.
Present value at 9%: $
Present value at 18%: $
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