Kirk Van Houten, who has been married for 23 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 comma 000 in 7 years. Kirk currently has $4 comma 524 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

Kirk Van Houten, who has been married for 23 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 comma 000 in 7 years. Kirk currently has $4 comma 524 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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