question archive If you invest $2,500 today, an investment guarantees you will have $3,600 four years from today
If you invest $2,500 today, an investment guarantees you will have $3,600 four years from today
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If you invest $2,500 today, an investment guarantees you will have $3,600 four years from today. What rate of interest will you earn?
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Answer:
Number of years =4
PV =2500
FV =3600
Rate of interest earned =(FV/PV)^(1/n)-1 =(3600/2500)^(1/4)-1 =9.54%
