MetaYou 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. Question 7Select one: a . 10.67% per year b. 50.00% per year c. 12.50% per year d. There is not enough information to answer this question.
MetaYou 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. Question 7Select one: a . 10.67% per year b. 50.00% per year c. 12.50% per year d. There is not enough information to answer this question.
Chapter13: Investment Fundamentals
Section: Chapter Questions
Problem 1DTM
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MetaYou 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
a . 10.67% per year
b. 50.00% per year
c. 12.50% per year
d. There is not enough information to answer this question.
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