Question
Consider the following independent situations. Click here to view factor tables 1. Alan Finley wishes to become a millionaire. His money market fund has a
Consider the following independent situations.
Click here to view factor tables
1. Alan Finley wishes to become a millionaire. His money market fund has a balance of $183,757 and has a guaranteed interest rate of 8%. How many years must Alan leave that balance in the fund in order to get his desired $925,000? (Round answer to 0 decimal places, e.g. 45.)
2. Assume that Carla Williams desires to accumulate $925,000 in 12 years using her money market fund balance of $264,403. At what interest rate must Carlas investment compound annually? (Round answer to 0 decimal places, e.g. 5%.)
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