Chapter 4: Calculate Rate of Return Gilbert, has been known to stretch the truth. He once said he caught a 40 pound bass in the lagoon near the Vietnam memorial at the Milwaukee waterfront. He also said that he invested $4,000 six years ago and that this investment is worth $19,000 today! For this to be true, approximately what annual rate of return did he have to earn? Assume the interest compounds annually. Use the below table if you wish to copy the data into Excel. Amount invested Current Value of Investment $4000 $19000 Weight of the bass (lbs) 40 Years Invested 6 29.65% 47.21% 26.42% 33.14% 25.38% 17.28% 36.36% 7.11%
Chapter 4: Calculate Rate of Return Gilbert, has been known to stretch the truth. He once said he caught a 40 pound bass in the lagoon near the Vietnam memorial at the Milwaukee waterfront. He also said that he invested $4,000 six years ago and that this investment is worth $19,000 today! For this to be true, approximately what annual rate of return did he have to earn? Assume the interest compounds annually. Use the below table if you wish to copy the data into Excel. Amount invested Current Value of Investment $4000 $19000 Weight of the bass (lbs) 40 Years Invested 6 29.65% 47.21% 26.42% 33.14% 25.38% 17.28% 36.36% 7.11%
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
Section: Chapter Questions
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Transcribed Image Text:Chapter 4: Calculate Rate of Return
Gilbert, has been known to stretch the truth. He once
said he caught a 40 pound bass in the lagoon near the
Vietnam memorial at the Milwaukee waterfront. He also
said that he invested $4,000 six years ago and that this
investment is worth $19,000 today! For this to be true,
approximately what annual rate of return did he have to
earn? Assume the interest compounds annually.
Use the below table if you wish to copy the data into
Excel.
Amount invested
Current Value of
Investment
$4000
$19000
Weight of the bass (lbs)
40
Years Invested
6
29.65%
47.21%
26.42%
33.14%
25.38%
17.28%
36.36%
7.11%
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