Franklin Templeton has just invested $8,960 for his son (age one). This money wi

Question

Franklin Templeton has just invested $8,960 for his son (age one). This money will be used for his son's education 19 years from now. He calculates that he will need $54,634 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Rate of return

Explanation / Answer

Answer is 9.98%

=RATE(19,0,-8960,54634) =9.98%

NPER 19 PMT 0 PV 8960 fv 54634

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