You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2 percent for the first 8 years and 8.6 percent for the next 14 years.What was your annual rate of return over the entire 22 years?Multiple Choice6.40 % 7.75 % 6.28 % 6.98 % 5.58%

Given information: Initial value of investment (V0) = $8,500 Annual interest rate for first "eight"…

Answered: You made an investment of $8,500 into…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year 4. Assuming that the interest is paid once per year, the effective annual rate of the invent is a. 12.2 b. 12.9 c. 11.5 d. 13.6 E. 10.8
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You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2 percent for the first 8 years and 8.6 percent for the next 14 years. What was your annual rate of return over the entire 22 years?Multiple Choice6.40 % 7.75 % 6.28 % 6.98 % 5.58%