Home Grades Personalized Reviews Discussion Course Materials m exam: Chapters 1-

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Home Grades Personalized Reviews Discussion Course Materials m exam: Chapters 1-6 maining: 107 minutes 1 Back to Assignment Deadline Today at 09.0 Your parents will retire in 18 years. They currently have $350,000 saved, and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they doná27t save any additional funds? O A. 5.01% B. 7.01% ? D. 6.01% Continue without saving Copyright Notices Privacy Notice Security Notice Accessibility Terms of Use MacBook Air F3 F5 FO F7 F8 F9 FVO

Explanation / Answer

Answer:D.6.01%

Interest rate PV = FV * (1 + i)^-n 350, 000 = 1000,000 (1 + r)^-18 1 + r = (350,000/1,000,000)-1, 18 r = 1.06005 – 1 = 0.06005 = 6.01%

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