The Solution to This Problem Requires Time Value of Money

question 95

Multiple Choice

The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. If Garrett has $5,000 per year to invest for 10 years and wants to accumulate $87,745 at the end of that time, he must find an investment that is earning at a rate of

• A) 6%
• B) 15%
• C) 12%
• D) 11%

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