John Desires to Accumulate $13, 603

question 32

Multiple Choice

John desires to accumulate $13, 603.83 by December 1, 2012.To accumulate that sum, he will make six equal semiannual deposits of $2, 000, beginning on June 1, 2010, into a fund that earns interest compounded semiannually.What annual rate of interest must the fund provide to yield the desired sum?

• A)5%
• B)6%
• C)10%
• D)12%