You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can put aside $20,000 at the end of each year, what rate of return must you earn in order to have the amount needed, assuming annual compounding? Multiple Choice Between 11% and 12% Between 8% and 9% 17% 6.63%
You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can put aside $20,000 at the end of each year, what rate of return must you earn in order to have the amount needed, assuming annual compounding? Multiple Choice Between 11% and 12% Between 8% and 9% 17% 6.63%
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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Question
You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can put aside $20,000 at the end of each year, what
Multiple Choice
Between 11% and 12%
Between 8% and 9%
17%
6.63%
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