Question
Solve for the unknown interest rate in each of the following (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16)):
Present Value Years Interest Rate Future Value
$ 800 7
% $ 1,551
990 8
% 1,888
23,500 19
% 150,332
78,800 22
% 329,815
You have decided that you want to be a millionaire when you retire in 44 years.
Requirement 1:
If you can earn an annual return of 11.1 percent, how much do you have to invest today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Investment $
Requirement 2:
What if you can earn an annual return of 5.55 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Investment
$
Today, you invested $5,100 in a retirement account. What annual rate of return will you have to earn if your account is to be worth $66,000 when you retire 37 years from now? Assume you make no further deposits into this account.
7.58 percent
7.51 percent
7.64 percent
7.17 percent
