Franklin Templeton has just invested $9,160 for his son (age one). This money wi

Question

Franklin Templeton has just invested $9,160 for his son (age one). This money will be used for his son

Franklin Templeton has just invested $9,160 for his son (age one). This money will be used for his son

Franklin Templeton has just invested $9,160 for his son (age one). This money will be used for his son's education 17 years from now. He calculates that he will need $53,882 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix A and Appendix B.(Round "PV Factor" to 3 decimal places and final answer to the closest interest rate. Omit the "%" sign in your response.)

Explanation / Answer

Hi,

Please find the answer as follows;

Rate = ?

PV = -9160

FV = 53882

Nper = 17

Rate = Rate(nper,pmt,pv,fv) = Rate(17,0,-9160,53882) = 10.989 or 11%

Answer is 11%

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.