An investor places $3,500 in a security that grows to $4,410 after 3 years with no additional deposits or withdrawals. What is the implied annual interest rate the investor will earn on this security?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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An investor places $3,500 in a security that grows to $4,410 after 3 years with no
additional deposits or withdrawals. What is the implied annual interest rate the
investor will earn on this security?
Transcribed Image Text:An investor places $3,500 in a security that grows to $4,410 after 3 years with no additional deposits or withdrawals. What is the implied annual interest rate the investor will earn on this security?
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