# Sailor Sam needs to have $15,000 at the end of 5 years to fulfill

## Question: 1. Sailor Sam needs to have $15,000 at the end of…

- Sailor Sam needs to have $15,000 at the end of 5 years to fulfill his dream of buying a small sailboat. He is willing to invest the funds as a single amount today, but wonders what rate of investment return he will need to earn, depending on how much he has to invest.
- What is the approximate annual rate of return, compounded annually, needed if Sam can invest $10,200 today?
- What is the approximate annual rate of return, compounded annually, needed if Sam can invest $8,150 today?
- What is the approximate annual rate of return, compounded annually, needed if Sam can invest $7,150 today?