(Related to Checkpoint 5.6) (Solving for i) Kirk Van Houten, who has been married for 22 years, would like to buy his wife an expensive diamond ring with a platinum setting on t wedding anniversary. Assume that the cost of the ring will be $13,000 in 8 years. Kirk currently has $4,578 to invest. What annual rate of return must Kirk earn on his investment to enough money to pay for the ring? The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is %. (Round to two decimal places.)
(Related to Checkpoint 5.6) (Solving for i) Kirk Van Houten, who has been married for 22 years, would like to buy his wife an expensive diamond ring with a platinum setting on t wedding anniversary. Assume that the cost of the ring will be $13,000 in 8 years. Kirk currently has $4,578 to invest. What annual rate of return must Kirk earn on his investment to enough money to pay for the ring? The annual rate of return Kirk must earn 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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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 wife an expensive diamond ring with a platinum setting on their 30-year
wedding anniversary. Assume that the cost of the ring will be $13,000 in 8 years. Kirk currently has $4,578 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 earn on his investment to accumulate enough money to pay for the ring is %. (Round to two decimal places.)
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