Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Bob wants to take his wife, Jessica, to Europe in three years to commemorate their 40th wedding anniversary. He recently received a $23,000 inheritance from an uncle, which he plans to put towards the trip. The trip is expected to cost $32,200, according to Bill. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, FVAD of $1, FVAD of $1, FVAD of $1, FVAD of $1, FVAD of $1, FVAD of $1, FVAD of $1, F (From the tables provided, select the appropriate factor(s).)

What annual compounded interest rate must Bill earn to save enough money to pay for the trip? (Round to the nearest whole percentage your interest rate.)

Sagot :

giannawilson817

Answer:

10%

Explanation:

Use future value formula

Future Value =  Present Value ((1+r)^n)

26,600 =  20,000 ((1+r)^3

26,600/20,000 = (1+r)^3

1.33 = (1+r)^3

1.33^1/3 = 1+r

1.0997 = 1+r

1.0997 - 1 = r

r = 0.997 = 9.97% = 10% (rounded of to the nearest whole percentage)

(pls give brainliest)

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.