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Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be 170,000. 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 11% and 12%,
B)Between 8% and 9%,
C)17%,
D)None of the above

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Solution Summary

Answers a question on time value of money-calculates required return.

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Answer: A) Between 11% and 12%,

FVIFA= Future Value Interest Factor for an ...

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