Jordan will need $20,000 at the end of 6 years to put a down payment on a house.What rate of return will he need to earn if he can invest $12,250 today?
A) 8.5%
B) 7.5%
C) 8.0%
D) 9.0%
E) 9.5%

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc28_3424_a768_ed12f257eb7c_TB2902_00 - 1
i = 11ea7fdb_fc28_5b35_a768_0dcb1771cce6_TB2902_00 - 1 = 8.5%
Using a financial calculator:
N = 6, PV = -12,250, PMT = 0, FV = 20,000, cpt I/Y = 8.5%

Jordan Will Need $20,000 at the End of 6 Years