If an investment of $3,000 will grow to $3,993 in three years without any additional deposits or withdrawals, what is the implied annual interest rate on this investment? a. 8% b. 9% c. 10% d. 11%

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
icon
Related questions
Question
100%

Option? General accounting question

If an investment of $3,000 will grow to $3,993 in three years without any
additional deposits or withdrawals, what is the implied annual interest rate
on this investment?
a. 8%
b. 9%
c. 10%
d. 11%
Transcribed Image Text:If an investment of $3,000 will grow to $3,993 in three years without any additional deposits or withdrawals, what is the implied annual interest rate on this investment? a. 8% b. 9% c. 10% d. 11%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning