Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniver
Posted: Sat Feb 19, 2022 2:31 pm
Bill O’Brien would like to take his wife, Mary, on a trip three
years from now to Europe to celebrate their 40th anniversary. He
has just received a $23,500 inheritance from an uncle and intends
to invest it for the trip. Bill estimates the trip will cost
$30,550. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
What interest rate, compounded annually, must Bill earn to
accumulate enough to pay for the trip? (Round your
interest rate to the nearest whole percentage.)
years from now to Europe to celebrate their 40th anniversary. He
has just received a $23,500 inheritance from an uncle and intends
to invest it for the trip. Bill estimates the trip will cost
$30,550. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
What interest rate, compounded annually, must Bill earn to
accumulate enough to pay for the trip? (Round your
interest rate to the nearest whole percentage.)