Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Misty needs to have $ 2 0 , 0 0 0 in 4 years to fulfill her goal of purchasing a small sailboat. She is

Misty needs to have $20,000 in 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave the money untouched for 4 years until it grows to $20,000 but she wonders what sort of investment return she will need to earn to reach her goal. Use your calculator or spreadsheet to figure out the approximate annually compounded rate of return needed if she can invest $14,200 today. The annually compounded rate of return Misty needs to earn to reach her goal is what percent?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions