Rate of return for amount needed


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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Accounting Basics: Rate of return for amount needed
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