Solving for Interest Rate per Period

Scarlett has $25,000 available today to invest for 20 years. Scarlett desires an investment fund balance of $60,000 at that time. What interest rate (compounded annually) must Scarlett earn to reach the desired balance in 20 years?

• Enter the percent rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%.

computing the Future Value of an Annuity

Stone will deposit $13,500 at the end of each year for 10 years in a fund that earns 8%, compounded annually. What is the total amount of the fund at the end of 10 years?

• Round answer to the nearest whole dollar.
• Do not use a negative sign with your answer.