Discount rate. Future Bookstore sells books before they are published. Today, they are offering the book Adventures in Finance for \( \$ 15.98 \), but the book will not be published for another 2 years. The retail price when the book is published will be \( \$ 21 \). What is the discount rate Future Bookstore is offering its customers for this book? What is the discount rate Future Bookstore is offering its customers for this book? (Round to two decimal places.)

To find the discount rate, you can use the formula for the present value (PV) of a future amount. The formula is given by: \[ PV = \frac{FV}{(1 + r)^n} \] Where: - \(PV\) is the present value (price today), - \(FV\) is the future value (price when published), - \(r\) is the discount rate, - \(n\) is the number of years until the book is published. Plugging in the values: \[ 15.98 = \frac{21}{(1 + r)^2} \] Rearranging gives us: \[ (1 + r)^2 = \frac{21}{15.98} \] \[ (1 + r)^2 = 1.313 \] Now taking the square root: \[ 1 + r = \sqrt{1.313} \approx 1.145 \] \[ r \approx 0.145 \text{ or } 14.5\% \] So, the discount rate Future Bookstore is offering its customers for this book is approximately **14.5%** when rounded to two decimal places.