A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave the workforce in 12 years if her savings has grown to $600,000. Currently, she has $425,000 saved in her retirement fund. What rate of return must her current savings earn per year to reach her goal? Assume interst rates are compounded annually. about 12% per year a little more than 7% per year a little less than 3% per year about 41% per year
A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave the workforce in 12 years if her savings has grown to $600,000. Currently, she has $425,000 saved in her retirement fund. What rate of return must her current savings earn per year to reach her goal? Assume interst rates are compounded annually. about 12% per year a little more than 7% per year a little less than 3% per year about 41% per year
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave the workforce in 12 years if her savings has grown to $600,000. Currently, she has $425,000 saved in her retirement fund. What
Assume interst rates are compounded annually.
about 12% per year |
||
a little more than 7% per year |
||
a little less than 3% per year |
||
about 41% per year |
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