(Related to Checkpoint 5.6) (Solving for
i)
Kirk Van Houten, who has been married for
22
years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be
$10,000
in
8
years. Kirk currently has
$4,436
to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?
Question content area bottom
Part 1
The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is
enter your response here%.
(Round to two decimal places.)