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Assume that Kimberly Williams desires to accumulate $1,282,000 in 15 years using her money market fund...

Assume that Kimberly Williams desires to accumulate $1,282,000 in 15 years using her money market fund balance of $157,551. At what interest rate must Kimberly’s investment compound annually?

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Answer #1

Present value factory = Initial investment / Maturity amount

= 157551/1282000 = 0.12289

Find the value in present value factor table in 15th year row

Interest rate = 15%

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