2-2 2-3 Present value What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7 percent annually? Finding the required interest rate Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement. What annual inter- est rate must they earn to reach their goal, assuming they don't save any additional funds