What is the minimum rate you would you need to earn

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Question - You and your partner have $100,000 to invest for your retirement in 20 yearsYou are conservative and want to invest the funds in an investment earning 5% interest compounded annually for 20 years. Your partner wants to invest the funds in a riskier investment which is expected to earn % compounded annually over the next 5 years. At that time, you would have to find another investment for the remaining 15 years. What is the minimum rate you would you need to earn on the amount accumulated at the end of 5 years, to convince you to choose your partner's option?

Reference no: EM133251871

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