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5Please fill in exactly the same way as this form Suppose a husband wants to take his wife on a trip three years from now
5Please fill in exactly the same way as this form
Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,500 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $28,700. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Enter your answer rounded to the nearest whole percentage. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1 and PVAD of $1 ) You would like to contribute to a savings account over the next three years in order to accumulate enough money to take a trip to Europe. Assume an interest rate of 4%, compounded quarterly. How much will accumulate in three years by depositing $560 at the end of each of the next 12 quarters? Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1 and PVAD of $1 )Step by Step Solution
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