Question
E6-10
Assume that Serena Williams desires to accumulate $1 million in 15 years using her market fund balance of $182,696. At what interest rate must Serena's investment compound annually?
I came up with 12,179.733 per year; but know this is incorrect.
Assume that Serena Williams desires to accumulate $1 million in 15 years using her market fund balance of $182,696. At what interest rate must Serena's investment compound annually?
I came up with 12,179.733 per year; but know this is incorrect.
Answers
helper
For compounded annually
R = rate, n = number of years
FV = orig investment * ((1 + R)^n)
1,000,000 = 182,696 * (1 + R)^15
5 = (1 + R)^15
(15th root(5)) = 1 + R
1.11 = 1 + R
.11 = R
please check my math
R = rate, n = number of years
FV = orig investment * ((1 + R)^n)
1,000,000 = 182,696 * (1 + R)^15
5 = (1 + R)^15
(15th root(5)) = 1 + R
1.11 = 1 + R
.11 = R
please check my math