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Unformatted text preview: years Mike must wait to become a millionaire. (b) Assume that Serena Williams desires to accumulate $1 million in 15 years using her money market fund balance of $182,696. At what interest rate must Serenas investment compound annually? The unknown interest rate is calculated by first dividing the future value of $1,000,000 by the present investment of $182,696, which is 5.47357the amount $1.00 would accumulate to in 15 years at an unknown interest rate. The factor or its approximate is then located in the Future value of FVIF Table by reading across the 15-period line to the 12% column; thus, 12% is the interest rate Serena must earn on her investment to become a millionaire....
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- Spring '08