Bill wants to buy a new boat in 7 years. He expects the new boat will

Bill wants to buy a new boat in 7 years. He expects the new boat will cost $28,000. Bill has $18,000 in an
investment account today. What rate of return must Bill earn on his investments to be able to buy the boat on
time?

What will be an ideal response?

ANSWER

6.515% (FV = $28,000, PV = $18,000, N = 7, solve for i)