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At what interest rate must investment compound annually

Consider the following independent situations.

(a) Mark Yoders wishes to become a millionaire. His money market fund has a balance of $148,644 and has a guaranteed interest rate of 10%. How many years must Mark leave that balance in the fund in order to get his desired $1,000,000?

(b) Assume that Elvira Lehman desires to accumulate $1 million in 15 years using her money market fund balance of $239,392. At what interest rate must Elvira's investment compound annually?

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Solution Preview :

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Finance Basics: At what interest rate must investment compound annually

Reference No:- TGS0679672

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Finance Basics: At what interest rate must investment compound annually

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Recent Questions Asked Finance Basics

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