What annual rate of return did have to earn
Your friend claims that he invested $5,000 seven years ago and that this investment is worth $38,700 today. For this to be true, what annual rate of return did he have to earn? Assume the interest compounds annually.
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Beatrice invests $1,430 in an account that pays 4 percent simple interest. How much more could she have earned over a 4-year period if the interest had compounded annually?
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Your friend claims that he invested $5,000 seven years ago and that this investment is worth $38,700 today. For this to be true.
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What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond's yield to maturity at the end of the year is 8.1%?
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