Alesha Wants to Deposit $25,000 into an Account That Compounds

question 28

Essay

Alesha wants to deposit $25,000 into an account that compounds interest.She hopes to have $40,000 in 7 years for a down payment on a house.What interest rate must she find in order to accomplish her goal? Round your answer to the nearest hundredth of a percent.

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Definitions:

Retailing Activities

Tasks and functions involved in selling goods and services directly to consumers for their personal, non-business use.

Supply Chain Management

The oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

Corporate Vertical Marketing System

A vertically integrated marketing strategy where a single company controls multiple levels of its distribution and production process.

Direct Marketing Channel

The manufacturer sells directly to the buyer.