What is the implied interest rate the investor will earn on the security of this financial accounting question? If a security of $2,000 will be worth $2,662 three years in the future,assuming that no additional deposits or withdrawals are made, what isthe implied interest rate the investor will earn on the security?a. 7.50%.b. 8.00%.c. 10.00%.d. 12.00%.

Step 1: Define Annual Rate Of ReturnAn annual rate of return on investment is its geometric rate of…

Answered: If a security of $2,000 will be worth…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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Please given answer this general accounting question
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If a security of $2,000 will be worth $2,662 three years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security? a. 7.50%. b. 8.00%. c. 10.00%. d. 12.00%.