Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
At what annual interest​ rate, compounded​ annually, would ​$500 have to be invested for it to grow to
​$1,942.45 in 11 ​years?
 
 
At what annual interest​ rate, compounded​ annually, would ​$500have to be invested for it to grow to
​$1,942.45 in 11 ​years?
 
 
 
 
 
Expert Solution
Check Mark
Step 1: Formula.

FV = A * (1+r)n

where

FV = future value

A = amount invested

r = interest rate

n = time period

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