Mr. Fish wants to build a house in eight years. He estimates that the total cost will be $150,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed?
A)Between 17% and 18%
B)Between 15% and 16%
C)12%
D)None of these options

Question

Quizplus · Accepted Answer

The correct answer is A because the rate of return must be between 17% and 18% in order to have the amount needed.

Mr Fish Wants to Build a House in Eight Years