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Example 1.10 Jim invests $500 at the beginning of 2002, 2003, and 2004 in a bank account that pays simple interest. At the end of 2004, the accumulated value of the account is $1,635. Calculate the rate of interest paid by the bank.

Example 1.10 Jim invests $500 at the beginning of 2002, 2003, and 2004 in a bank account that pays simple interest. At the end of 2004, the accumulated value of the account is $1,635. Calculate the rate of interest paid by the bank.

Essentials Of Investments
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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Example 1.10 Jim invests $500 at the beginning of 2002, 2003, and 2004 in a bank account that pays simple interest. At the end of 2004, the accumulated value of the account is $1,635. Calculate the rate of interest paid by the bank.
Transcribed Image Text:Example 1.10 Jim invests $500 at the beginning of 2002, 2003, and 2004 in a bank account that pays simple interest. At the end of 2004, the accumulated value of the account is $1,635. Calculate the rate of interest paid by the bank.
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