You've just turned 20 years old today. You would like to finish your Cal Poly degree,...

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You've just turned 20 years old today. You would like to finish your Cal Poly degree, then work for a few years, and then start your grad school when you turn 26. To save up enough for your grad school degree you will set aside $12,300 once a year, a total of six identical amounts, deposited into the same bank account. You will set aside the first such amount today. When you turn 26 and start your grad school degree, you will right away withdraw $28,000 to pay for the first year of your grad school tuition. You will then continue withdrawing the same amount of money from the same bank account (which - keep in mind! - keeps earning you interest), once each year. To cover the tuition expenses you will need to make four such money withdrawals. %. (Do not Based on the above, the annual interest rate in this bank account is round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34) Return % You've just turned 20 years old today. You would like to finish your Cal Poly degree, then work for a few years, and then start your grad school when you turn 26. To save up enough for your grad school degree you will set aside $12,300 once a year, a total of six identical amounts, deposited into the same bank account. You will set aside the first such amount today. When you turn 26 and start your grad school degree, you will right away withdraw $28,000 to pay for the first year of your grad school tuition. You will then continue withdrawing the same amount of money from the same bank account (which - keep in mind! - keeps earning you interest), once each year. To cover the tuition expenses you will need to make four such money withdrawals. %. (Do not Based on the above, the annual interest rate in this bank account is round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34) Return %

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To find the annual interest rate in the bank account we can use the future value formula FV PV1 rn w... View the full answer