Answered: Jill invested $1,000 each year for five…

Jill invested $1,000 each year for five years in a local company and sold her interest after five years for $8,000. What annual rate of return did Jill earn?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Please solve for i, with steps please , thank you

Jill invested $1,000 each year for five years in a local company and sold
her interest after five years for $8,000. What annual rate of return did Jill
earn?
$8, 000= $1,000(F[A, ¿%,5)
(1+i)³ – 1
F/A, 1%,5) =
$8, 000
$1,000
8 =
i

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