Answer the question below. It is important that you show your work. Either type the
formula used or your inputs (PN, N, etc.)
•
After getting married, Tamara decided that she and her husband needed to start doing
serious retirement planning. She determined that they will need $1,000,000 in 25 years
to live a comfortable life. If Tamara and her husband have $100,000 currently saved,
what rate of return must they earn, on an annual basis, to meet their goal? (Hint: When
doing a problem that has a PV and a FV value, one must be entered as a negative to
represent a cash outflow. If one is not entered as a negative you will get an error. So,
when solving for N or I, in most cases, you will have to make PV or PMT a negative value.
See calculator example on page 2-26). 5 points