Page 5 of 6 Page 6 of 6 7. Finding an annuity to meet your goal. You are seeking an annuity that will meet your objective of accumulating $300,000 in 20 years by depositing $225/month into the account. (Monthly compounding at the end of each month.) Calculate the annual interest rate, r, that would be required to achieve your goal. (Hint: Algebraic solution would be extremely difficult to calculate; don't try it! Use a graphical solution off your calculator. No guess & check!) (a) Setup the FV formula as a function of the annual interest rate, r. (Hint: Remember that i n .) [10 points FV) - (b) Graph FV) vs. r along with the desired FV goal. [10 points $400,000 $300,000 FVt) $200,000 S100.000 .02 Annual interest rate, (c) Use the intersect feature of your calculator to identify the required annual interest rate to meet your objective. Identify that point on your graph abows 10 points! - % decimal place OK) End of the tes Page 5 of 6 Page 6 of 6 7. Finding an annuity to meet your goal. You are seeking an annuity that will meet your objective of accumulating $300,000 in 20 years by depositing $225/month into the account. (Monthly compounding at the end of each month.) Calculate the annual interest rate, r, that would be required to achieve your goal. (Hint: Algebraic solution would be extremely difficult to calculate; don't try it! Use a graphical solution off your calculator. No guess & check!) (a) Setup the FV formula as a function of the annual interest rate, r. (Hint: Remember that i n .) [10 points FV) - (b) Graph FV) vs. r along with the desired FV goal. [10 points $400,000 $300,000 FVt) $200,000 S100.000 .02 Annual interest rate, (c) Use the intersect feature of your calculator to identify the required annual interest rate to meet your objective. Identify that point on your graph abows 10 points! - % decimal place OK) End of the tes