Expected rate of return on the investment


Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will cost $6,000,000. How much do they need to invest each year to have $6,000,000 in fifteen years:

a. If the expected rate of return on the investment is 12 percent, and the hospital invests at the end of each year?

b. If the expected rate of return on the investment is 12 percent, and the hospital invests at the beginning of each year?

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Finance Basics: Expected rate of return on the investment
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