Franklin Templeton has just invested $9,860 for his son (age one). This money will be used for his son's education 20 years from now. He calculates that he will need $31,603 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator Rate of return methods. Appendix B Present value of St. PVM PVFV 0 0 0 Period 1 2 3 0.990 0.980 0.971 0.980 0.961 0.943 0.971 0.942 0.915 0.961 0.924 0.888 0.951 0906 0.906 0.853 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0905 0 820 0.744 0.896 0.804 0.722 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0642 0.853 0.728 0.623 0.844 0.714 0.005 0.836 0.700 0.587 0.828 0.686 0.570 520 0.820 0.673 0.554 0.780 0.610 0.478 0.742 0.552 0.412 + 0.672 0.453 0.307 0.608 0.372 0.228 Appendix 3 conduded) Present value of $1 4 0.962 .925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0625 0.601 0.577 0555 0.534 0.513 0.494 0.475 .456 0.375 0.308 0.208 0.141 5 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0645 0 0.614 0585 0557 0530 0505 0.481 0.458 0.4360 0.416 0.396 0.377 0.295 0.231 0.142 0.087 Percent 6 7 0.943 0.035 0.890 0.873 0.840 0.816 0.792 0.763 0.747 0.713 0.705 0.666 0.665 0.623 0.627 0.582 .592 0.544 0.558 0.508 0527 0.475 0.497 0444 0469 0415 0.442 0.388 417 0.362 0.394 0.339 .371 0317 0.350 0296 0.331 0277 0.312 0.258 0.233 0.184 0.174 0 .131 0.097 0.067 0.054 0.034 8 9% 10% 0.926 0 912 0.909 0.857 0 .842 0.826 0.294 0.772 0.750 0.735 2507080683 0.681 0.650 0.621 .630 0.595 0.564 0.583 0547 0.513 .540 0.502 0.467 0.500 0.460 0.424 0.463 0 422 0.386 0.429 0388 0.350 0 397 0.356 0.319 0 368 0 326 0.290 0.340 0 299 0.263 0.315 0.275 0.239 .292 0.252 0.218 .270 0231 0.998 0.250 0 212 0.180 0232 0.194 0.164 0.215 0.178 0.149 0.146 0.116 0.092 0.099 0.075 0.057 0.046 0.032 0.022 0.021 0.013 0 .009 11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0286 0.258 0232 0.209 0.188 0.170 0.153 0.138 0.124 0.074 0,044 0.015 0.005 12% 0.893 0.797 0.712 0.636 0.567 0507 0.452 0.404 0.361 0322 0.287 0.257 0.229 0.205 0.183 0163 .146 0.130 0.116 0.104 0.059 0.033 0.011 0.003 Gs 0 0 0 8 0 Period 13% 0.885 0783 0.693 0.613 0.543 0 480 0.425 0.376 0 333 0295 0.261 0.231 0.204 0.18 0.160 0.141 0.125 0.111 0.098 0.087 0.047 0.026 0.008 0.002 14% 0.877 0.769 0675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.038 0.020 0.005 0.001 15% 16% 17% 0.8700 862 0.855 0.7560.743 0731 0658 0641 0624 0572 0.552 0534 0.497 0.476 0456 0432 04100 390 0.376 0 354 0333 0327 03050285 02840263 0.243 0247 02270.20 0.215 0.195 0 . 178 0.187 0.168 0.152 0.163 0.145 0.130 0.141 0.125 0.111 0.123 0.1080.095 0.107 0 093 0.081 0.093 0.000 0.069 0.081 0.069 0 059 0.070 0.060 0,051 0.061 0.051 0.043 0.030 0.024 0.020 0,015 0,012 0.009 0,004 0.003 0.002 0.001 0.001 0 0 Percent 18% 19% 0.847 0.840 0.7180 .706 0.609 0.593 0515 0.499 0437 0419 0.370 0.352 0.314 0296 0266 0249 0.225 0.209 0.191 0.176 0.162 0.148 0.137 0.124 0.116 0.104 0.099 0.008 0084 0.074 0.071 0.062 0.060 0,052 0.051 0.044 0.043 0 037 0.037 0.031 0.0160.013 0.007 0.005 0.001 0.001 0 20% 25% 30% 35% 40% 50% 0.833 0.8000.769 0.741 0.714 0.667 0.694 0.640 0.592 0549 0510 0.444 05790512 0.455 0.406 0364 0.296 0482 04100 3500 301 0260 0.198 0402 0.328 0.269 0223 0 186 0132 0.335 0262 0207 0165 0.133 0088 0.279 0210 0.1590 122 0095 0.059 0.233 0 168 0.123 0091 0 068 0039 0194 0 1340094 0.067 0048 0026 0162 0 107 0073 0050 0.035 0.017 0.135 0.086 0.056 0.037 0.025 0.012 0112 0069 0.043 0027 0.018 0,008 0.093 0055 0.033 0 020 0 013 0,005 0.078 0044 0.025 0,015 0.009 0.003 0.0650035 0.020 0011 0.006 0.002 0.054 0.02800150000 0.005 0.002 0.045 0.023 0 012 0.006 0.003 0.001 0.038 0018 0.009 0.005 0.002 0.001 0.031 0.014 0.007 0.003 0.002 0 0.026 0.012 0.0050.002 0.0010 0.010 0,004 0.001 0.0010 O 0.004 0.000 0 0 0 0.001 0 0 0 00 0 0 0 0 0 0 88%86 And he was my P erl 42100 5417 5.786 599 C CSS 307 S SIT 7024 6710 E 14 SE 96 75167 168 1692 19 11255 12.134 13.004 105759954 95 1348 10635 12:106 11296 10563 794 8.358 9999 1413 15.662 13.573 12 2561 16 162 163 12.166 113110477 100 947 9.73 17226 15.678 43 13:14 12.005 11.10 18.046 16351 14877 13500 12462 11470 22.023 1052317413 15.632 44 1273 25.808 22 396 19600 17.292 15372 13765 323527.355 221151979317 159 15.046 9.196 144 2.730 2145218.256 15762 0. 0 54 11 1209 9.122 544 9.2 LT 604 98120.129 10675 0 1125 10.274 11350 122.33 0.963 0229.1497.120 201 7.702725 7 736 5 7 .663 7400 0T7 432 7643 2 7 6 BOSS 7 9 244 .915 9.042 304 3 01 And end ) Prentals $1 US 19 855 0 0 OES TECB YO 80 66 853 SOS 0347 OD 8 SE 197 900 140 769 15 01 20 0714 220 520 22 2210 2732742 211 2500 2100 2539 2942914 285 269 2792 157 19 20 21 2 2 215 2200 201 4 1GO T O9190222122706 7COS 2151 2002 200 4307 296 277 2729 295 292 21 61 TT 10992 S 273 3 216 015 32 6 404 42 19 2571 S LO 1 22 SO 402 641 204 .002S734 S E 1 E COTS S752229