Lesson 3: Time Value of Money Question 3 You are in the process of budgeting for your university education. You estimate that you will need about...

Lesson 3: Time Value of Money

Question 3

You are in the process of budgeting for your university education. You estimate that you will need about $50,000 to go back to university after 3 years. You have already saved $35,000. You want to invest this money for the next 3 years, and then use the future proceeds to finance your university education. What is the minimum annual rate of return you must obtain on your investment to achieve your goal?