Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amy Willis will invest $ 31,800 today. She needs $ 127,200 in 26 years. What annual interest rate must she earn? (Round answer to 0

Amy Willis will invest $ 31,800 today. She needs $ 127,200 in 26 years.

What annual interest rate must she earn? (Round answer to 0 decimal places, e.g. 7%.) Student's note: I have divided $31,800 / $127,200 which gives me 0.25000, yet there's no 0.25000 to be found on the PV table on the period 26 I have divided $127,200/ $31,800 which gives me 4.00000, yet there's n0 4.0000 to be found on the FV table on the period 26 What am I doing wrong?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting (Chapters 1-17)

Authors: John Wild

25th Edition

1260780147, 9781260780147

More Books

Students also viewed these Accounting questions

Question

Does it have at least one-inch margins?

Answered: 1 week ago

Question

Does it have correct contact information?

Answered: 1 week ago

Question

Does it exceed two pages in length?

Answered: 1 week ago