Your parents will retire in 28 years. They currently have $300,000 saved, and they think they will need $2,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. 0%

Your parents will retire in 28 years. They currently have $300,000 saved, and they think they will need $2,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. 0%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Your parents will retire in 28 years. They currently have $300,000 saved, and they think they will need $2,500,000 at retirement. What annual interest rate must they earn
to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
%

Expert Solution

Step 1

Investment amount (PV) = $300,000

Future value required (FV) = $2,500,000

Period (n) = 28 Years

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