Time Value??Personal Finance Problem?? Misty needs to have ?$15 comma 00015,000 in 55 years to fulfill her goal of...

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Finance

Time Value??Personal Finance Problem?? Misty needs to have
?$15 comma 00015,000
in
55
years to fulfill her goal of purchasing a small sailboat. She iswilling to invest a lump sum today and leave the money untouchedfor
55
years until it grows to
?$15 comma 00015,000?,
but she wonders what sort of investment return she will need toearn to reach her goal. Use your calculator or spreadsheet tofigure out the approximate annually compounded rate of returnneeded if she can invest
?$11 comma 20011,200
today.
The annually compounded rate of return Misty needs to earn toreach her goal is
nothing?%.
?(Round to two decimal? places.)

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Transcribed Image Text

Time Value??Personal Finance Problem?? Misty needs to have?$15 comma 00015,000in55years to fulfill her goal of purchasing a small sailboat. She iswilling to invest a lump sum today and leave the money untouchedfor55years until it grows to?$15 comma 00015,000?,but she wonders what sort of investment return she will need toearn to reach her goal. Use your calculator or spreadsheet tofigure out the approximate annually compounded rate of returnneeded if she can invest?$11 comma 20011,200today.The annually compounded rate of return Misty needs to earn toreach her goal isnothing?%.?(Round to two decimal? places.)