Solving for

i)

Kirk Van Houten, who has been married for

23

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

$11 comma 500

in

7

years. Kirk currently has

$4 comma 433

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

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Part 1

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

%.

(Round to two decimal places.)