The annual interest rate rate of return on the investment


1. What is the present value of a lump sum, $293,000 in 9 years if the interest rate (discount rate) is 10.5 percent annually? (Round your answer to 2 decimal places)

2. Suppose you invested $132,000 in an investment 10 years ago. The investment is worth now $300,000. The annual interest rate (rate of return) on the investment during this period must be ______% per year. (Round your answer to 2 decimal places)

3. You're saving to buy a new truck that cost $35,000. You have $28,000 today that can be invested at your bank. The bank pays 5.4 percent annual interest on its accounts. It will be ______ years before you have enough to buy the truck. (Round your answer to 2 decimal places)

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Financial Management: The annual interest rate rate of return on the investment
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