Calculating Rate Of Return EXAMPLE 7-1 An engineer invests $5000 at the end of every year for a 40-year career. If the engineer wants $1 million in savings at retirement, what interest rate must the investment earn?

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
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تعيئة الشكل
O OD
Ji l
blaui
تأتيرات الأسكال
Smartart
University of Palestine
College of Engineering & Urban Planning
Calculating Rate Of Return
EXAMPLE 7-1
An engineer invests $5000 at the end of every year for a 40-year career. If the
engineer wants $1 million in savings at retirement, what interest rate must the
investment earn?
SOLUTION
Net PW = 0 = -$5000(F/A, i, 40) + $1,000,000
%3D
Pewriting we see that
Transcribed Image Text:تعيئة الشكل O OD Ji l blaui تأتيرات الأسكال Smartart University of Palestine College of Engineering & Urban Planning Calculating Rate Of Return EXAMPLE 7-1 An engineer invests $5000 at the end of every year for a 40-year career. If the engineer wants $1 million in savings at retirement, what interest rate must the investment earn? SOLUTION Net PW = 0 = -$5000(F/A, i, 40) + $1,000,000 %3D Pewriting we see that
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