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Click here to read the eBook: Finding the Interest Rate, I FINDING THE REQUIRED INTEREST RATE Your parents will retire in 30 years. They currently
Click here to read the eBook: Finding the Interest Rate, I FINDING THE REQUIRED INTEREST RATE Your parents will retire in 30 years. They currently have $200,000 saved, and they think they will need $1,700,000 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. % TIME TO REACH A FINANCIAL GOAL You have $42,529.37 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $270,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. years PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6. a. If other investments of equal risk earn 9% annually, what is its present value? Round your answer to the nearest cent. $ b. If other investments of equal risk earn 9% annually, what is its future value? Round your answer to the nearest cent. $
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