(Related to Checkpoint 5.6) (Solving for ) Kirk Van Houten, who has been married for 22 years, would like to buy his wile an expensive diamond ring with a platinum setting on their 30-year wedding anniversary Assume that the cost of the ring will be $10,000 in 8 years. Kirk currently has $4,474 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring? The annual rate of return Kirk must eam on his investment to accumulate enough money to pay for the ring is % (Round to two decimal places)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(Related to Checkpoint 5.6) (Solving for ) Kirk Van Houten, who has been married for 22 years, would like to buy his wile an expensive diamond ring with a platinum setting on their 30-year wedding
anniversary Assume that the cost of the ring will be $10,000 in 8 years. Kirk currently has $4,474 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to
pay for the ring?
The annual rate of return Kirk must eam on his investment to accumulate enough money to pay for the ring is % (Round to two decimal places)
Transcribed Image Text:(Related to Checkpoint 5.6) (Solving for ) Kirk Van Houten, who has been married for 22 years, would like to buy his wile an expensive diamond ring with a platinum setting on their 30-year wedding anniversary Assume that the cost of the ring will be $10,000 in 8 years. Kirk currently has $4,474 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring? The annual rate of return Kirk must eam on his investment to accumulate enough money to pay for the ring is % (Round to two decimal places)
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