Time Value Personal Finance Problem Misty needs to have $16,000 in 7 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 7 years until it grows to $16,000, 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 approximate annually compounded rate of return needed if she can invest $10,700 today. The annually compounded rate of return Misty needs to earn to reach her goal is _____%. (Round to two decimal places.)
Time Value Personal Finance Problem Misty needs to have $16,000 in 7 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 7 years until it grows to $16,000, 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 approximate annually compounded rate of return needed if she can invest $10,700 today. The annually compounded rate of return Misty needs to earn to reach her goal is _____%. (Round to two decimal places.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
Related questions
Question
Time Value
Misty needs to have $16,000 in 7 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 7 years until it grows to $16,000, 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 approximate annually compounded
today.
The annually compounded rate of return Misty needs to earn to reach her goal is _____%. (Round to two decimal places.)
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