(Related to Checkpoint 5.6) (Solving for

i)

Kirk Van Houten, who has been married for

21

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

$10,500

in

9

years. Kirk currently has

$4,489

to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

Question content area bottom

Part 1

The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is

enter your response here%.

(Round to two decimal places.)