Time Value Personal Finance Problem Misty needs to have $22000 in 4 years to fulfill her...
Time Value Personal Finance Problem Misty needs to have $22000 in 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave the money untouched for 4 years until it grows to 22,000, but she wonders what sort of investment return she will need to earn to reach her goal. Use your calculator or spreadsheet to figure out the approximate annually compounded rate of return needed if she can invest $15,800 today.
The annually compounded rate of return Misty needs to earn to reach her goal is
Homework Answers
| Compounded rate of return | Using rate function in MS excel | rate(nper,pmt,pv,fv,type) | nper =4 pmt =0 pv =-15800 fv =22000 type =0 | RATE(4,0,-15800,22000,0) | 8.63% |
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Time Value Personal Finance Problem Misty
needs to have $22000 in 4 years to fulfill her...
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What is the equation to find the answers to these question?
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TIME VALUE OF MONEY IN PERSONAL FINANCE
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