Answered: If I lend $40,000 to my friend at 8%…

If I lend $40,000 to my friend at 8% per year simple interest, what compound interest rate would yield the same amount of money received in year 10?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

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If I lend $40,000 to my friend at 8% per year simple interest, what compound
interest rate would yield the same amount of money received in year 10?

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