Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Time ValuePersonal Finance Problem Misty needs to have $ 12,000 at the end of 4 years to fulfill her goal of purchasing a small sailboat.

Time ValuePersonal Finance Problem Misty needs to have $12,000

at the end of 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 $12,000, 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 annually compounded rate of return needed if she can invest $7,900 today.

The annually compounded rate of return Misty needs to earn to reach her goal is ___% (round to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Public Finance and Public Policy

Authors: Jonathan Gruber

5th edition

1464143331, 978-1464143335

More Books

Students also viewed these Finance questions