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The Ramos family would like to go on an European vacation when their two children graduate from college in 5 years. They can deposit $12,500 in an investment account today and they find out that the vacation will cost a minimum of $20,300 in 5 years. What is the minimum annual interest rate they must earn to achieve their goal of $20,300 if the interest is compounded semi-annually?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M948845

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