Finance

6. Kirk Van Houten, who has been married for 25 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $9,146 in 5 years, Kirk currently has $4,750 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring? Click the table icon to view the PVIF table 1 The annual rate of return Kirk must earn on his investment is %. (Round to the nearest integer.) 1: Data Table 7% 8% 9% 10% 13% 14% 15% 16% 1 0.935 0.926 0.893 0.885 0.862 Present Value of $1 (PVIF) 11% 12% 0.901 0.812 0.731 0.659 2 0.873 0.816 0.909 0.826 0.751 0.683 0.621 0.783 0.693 3 0.870 0.756 0.658 0.857 0.794 0.735 0.681 0.797 0.712 0.636 0.743 0.641 0.552 4 0.763 0.613 0.572 0.497 5 0.713 0.567 0.543 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.476 6 0.432 7 0.917 0.842 0.772 0.708 0.650 0.596 0.547) 0.502 0.460 0.422 0.388 0.356 0.326 0.666 0.623 0.582 0.544 0.630 0.583 0.540 0.410 0.354 0.507 0.452 0.404 0.564 0.513 0.467 0.424 0.386 0.350 0.480 0.425 0.376 0.333 8 0.376 0.327 0.284 0.247 0.305 0.263 9 0.500 10 0.508 0.475 0.463 0.429 0.361 0.322 0.287 0.257 0.229 0.270 0.237 11 0.215 0.295 0.261 0.231 0.204 0.227 0.195 0.168 12 0.187 0.444 0.415 0.397 0.368 0.319 0.290 0.208 0.182 13 0.145 0.388 14 15 0.205 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0.286 0.258 0.232 0.209 0.188 0.170 0.153 0.138 0.124 0.112 0.101 0.091 0.340 0.315 0.292 0.270 0.263 0.239 0.218 0.362 0.339 0.183 0.163 0.141 0.123 0.107 0.093 0.125 0.108 0.093 0.080 16 0.160 0.140 0.123 0.108 0.095 0.083 17 0.317 18 0.296 0.069 0.299 0.275 0.252 0.231 0.212 0.194 0.178 0.164 0.150 0.138 0.126 0.081 0.070 19 0.181 0.160 0.141 0.125 0.111 0.098 0.087 0.077 0.068 0.060 0.277 0.060 0.198 0.180 0.164 0.149 0.135 0.123) 0.250 0.232 0.215 0.199 0.184 0.170 20 0.061 21 22 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.033 0.011 0.003 0.073 0.064 0.056 0.049 0.043 0.053 0.046 0.040 23 0.258 0.242 0.226 0.211 0.197 0.184 0.131 0.067 0.034 0.112 24 0.158 0.102 0.082 25 0.051 0.044 0.038 0.033 0.028 0.024 0.012 0.003 0.001 0.146 0.099 0.116 0.075 0.092 0.057 0.053 0.047 0.026 0.074 0.044 30 0.035 0.030 0.015 0.004 0.001 0.038 0.020 0.005 40 0.046 0.021 0.032 0.013 0.022 0.009 0.015 0.005 0.008 0.002 50 0.001