If a $19,000 investment grew to $25,805 in 4 1/2 years of quarterly compounding, what effective rate of return was the investment earning? (Do not round the intermediate calculations. Round your answer to two decimal places.) Effective rate

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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If a $19,000 investment grew to $25,805 in 4 1/2 years of quarterly compounding, what effective rate of return was the
investment earning? (Do not round the intermediate calculations. Round your answer to two decimal places.)
Effective rate
1%
Transcribed Image Text:If a $19,000 investment grew to $25,805 in 4 1/2 years of quarterly compounding, what effective rate of return was the investment earning? (Do not round the intermediate calculations. Round your answer to two decimal places.) Effective rate 1%
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