Question
In: Finance
Kirk Van Houten, who has been married for 21 years, would like to buy his wife...
Kirk Van Houten, who has been married for 21 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 $10,500 in 9 years. Kirk currently has $4,433 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 __
Solutions
Expert Solution
Calculating Annual rate of Return,
10,500 = 4,433(1 + r)⁹
r = 10.06%
Annual Rate of Return = 10.06%
jeff jeffy answered 2 years agoRelated Solutions
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