1. At what rate must $400 be compounded annually for it to grow to $900.88 in 12 years? Submit your answer as a percentage and round to two decimal places.

You are required to show the following 4 steps for each problem (sample questions and solutions are provided for guidance):

1. (i) Develop the timeline (linear representation of the timing of cash flows)

2. (ii) Identify the time value of money variable (PV, FV, PMT, N or Rate) which needs to

   be calculated in the question.

3. (iii) Identify the values of the remaining four variables (PV, FV, PMT, N or Rate) from

   the question. Be sure to input positive or negative signs.

4. (iv) Calculate the correct value of the variable identified in step (ii).