Franklin Templeton has just invested $9,360 for his son (age one). This money will be used for his son’s education 19 years from now. He calculates that he will need $40,345 by the time the boy goes to school.
What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix Bfor an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)