If a security currently worth $12,800 will be worth $16,124.31 three years in the future, what is the implied interest rate the investor will earn on the security- assuming that no additional deposits or withdrawals are made? A) 8.00% B) 6.40% C) 7.94% D) 1.26%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
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Hi expart Provide answer the financial accounting question

If a security currently worth $12,800 will be worth
$16,124.31 three years in the future, what is the implied
interest rate the investor will earn on the security-
assuming that no additional deposits or withdrawals are
made?
A) 8.00%
B) 6.40%
C) 7.94%
D) 1.26%
Transcribed Image Text:If a security currently worth $12,800 will be worth $16,124.31 three years in the future, what is the implied interest rate the investor will earn on the security- assuming that no additional deposits or withdrawals are made? A) 8.00% B) 6.40% C) 7.94% D) 1.26%
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