If the 1-year rate of return is 20 and interest rates are, Financial Management

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If the 1-year rate of return is 20 and interest rates are

1. If the 1-year rate of return is 20% and interest rates are constant, what is the 5-year holding rate of return?

2. If you invest $2,000 today and it earns 25% per year, how much will you have in 15 years?

3. What is the holding rate of return for a 20-year investment that earns 5%/year each year? What would a $200 investment grow to?

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Financial Management: If the 1-year rate of return is 20 and interest rates are

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