EBK CFIN
EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
Question
Book Icon
Chapter 4, Problem 18PROB
Summary Introduction

Ten years ago, B invested $1,250 and the current value is $3,550.

An annual percentage rate (APR) is the annual rate which measures the absolute annual cost of funds over the period of a loan or an investment.

APR=FVPVn

Here,

The annual percentage rate is “APR”.

The present value is “PV”.

The future value is “FV”.

The maturity period is “n”.

Blurred answer
Students have asked these similar questions
ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment?
Stephen claims that he invested $6,000 six years ago and that this investment is worth $28,700 today. For this to be true, what annual rate of return did he have to earn? Assume the interest compounded annually. Can the excel and calculator solutions be provided?
Thirty years ago, your father invested $11,000. Today, that investment is worth $287,047. What is the average annual rate of return your father earned on his investment?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    EBK CFIN
    Finance
    ISBN:9781337671743
    Author:BESLEY
    Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
EBK CFIN
Finance
ISBN:9781337671743
Author:BESLEY
Publisher:CENGAGE LEARNING - CONSIGNMENT