Rate of interest that must be earned in order to reach goal

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Reference no: EM131524851

The Town of Colfax will need $500,000 six years from today to make street repairs. They will make six annual contributions of $75,000 each into a designated account to fund these repairs, with the first contribution to be made one year from today. What is the minimum rate of interest that must be earned in order to reach this goal?

a. 4.20%

b. 3.02%

c. 7.31%

d. 10.00%

Reference no: EM131524851

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