A client at ZBX Fin Planning deposits $85,000 in an account today in hope that it grows to $150,000 in 6 years. What annual compounded rate would the client need to earn? (Provide answer to nearest basis point, as in "12.34%" or "0.1234") (ii) Now suppose the client realizes she can expect to earn 9.96% APR compounded monthly in another portfolio marketed by ZBX. If the client earns that rate, how many years woul
A client at ZBX Fin Planning deposits $85,000 in an account today in hope that it grows to $150,000 in 6 years. What annual compounded rate would the client need to earn? (Provide answer to nearest basis point, as in "12.34%" or "0.1234") (ii) Now suppose the client realizes she can expect to earn 9.96% APR compounded monthly in another portfolio marketed by ZBX. If the client earns that rate, how many years woul
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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(i) A client at ZBX Fin Planning deposits $85,000 in an account today in hope that it grows to $150,000 in 6 years. What annual compounded rate would the client need to earn? (Provide answer to nearest basis point, as in "12.34%" or "0.1234")
(ii) Now suppose the client realizes she can expect to earn 9.96% APR compounded monthly in another portfolio marketed by ZBX. If the client earns that rate, how many years would it take to realize the above $150,000 goal? (Round number of years to nearest hundredth, as in "1.23" years)
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