Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
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
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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