Problem 7-12 You are 25 years old and inherit $60,000 from your grandmother. If you wish to purchase a $107,450 boat to...
Problem 7-12 You are 25 years old and inherit $60,000 from your grandmother. If you wish to purchase a $107,450 boat to celebrate your 35th birthday, what compound annual rate of return must you earn? Use Appendix A to answer the question. Round your answer to the nearest whole number. %
Homework Answers
Ans 6%
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| FV/ PV = | (1 + r )^n |
| 107450 / 60000 = | (1 + r%)^10 |
| 1.7908333333 = | (1 + r%)^10 |
| r = | 6% |
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Problem 7-12 You are 25 years old and inherit $60,000 from your grandmother. If you wish to purchase a $107,450 boat to...
Problem 7-12 You are 25 years old and inherit $60,000 from your grandmother. If you wish...
Problem 7-12 You are 25 years old and inherit $60,000 from your grandmother. If you wish to purchase a $107,450 boat to celebrate your 35th birthday, what compound annual rate of return must you earn? Use Appendix A to answer the question. Round your answer to the nearest whole number.
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You are 25 years old and inherit $65,000 from your grandmother. If you wish to purchase...
You are 25 years old and inherit $65,000 from your grandmother. If you wish to purchase a $100,000 boat to celebrate your 30th birthday, what compound annual rate of return must you earn? PLEASE PROVIDE WHAT YOU WOULD PLUG INTO A FINANCIAL CALCULATOR AND SOLVE FOR! I don't need the formulas
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