You have accumulated $8,000 toward the down payment on a piece of lake front propert wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in not to contribute more new funds to your down payment fund, what rate of return must y your objective in the specified time? Assume that your investment fund compounds ann Select one: a. 10.67% per year O b. 50.00% per year O c. 12.50% per year Od. There is not enough information to answer this question.
You have accumulated $8,000 toward the down payment on a piece of lake front propert wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in not to contribute more new funds to your down payment fund, what rate of return must y your objective in the specified time? Assume that your investment fund compounds ann Select one: a. 10.67% per year O b. 50.00% per year O c. 12.50% per year Od. There is not enough information to answer this question.
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:You have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota. You
wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in four years. If you choose
not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach
your objective in the specified time? Assume that your investment fund compounds annually.
Select one:
a. 10.67% per year
O b. 50.00% per year
12.50% per year
O d. There is not enough information to answer this question.
C.
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