Your parents will retire in 16 years. They currently have $320,000 saved, and they think they will need $1,450,000 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.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3. Problem 5.03 (Finding the Required Interest Rate)
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Your parents will retire in 16 years. They currently have $320,000 saved, and they think they will need $1,450,000 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.
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Transcribed Image Text:3. Problem 5.03 (Finding the Required Interest Rate) BE eBook Your parents will retire in 16 years. They currently have $320,000 saved, and they think they will need $1,450,000 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. % Grade it Now Save & Continue Continue without saving
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