Kant Miss Company is promising its investors that it will double their money every 4 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $450 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $28,000? Using the time value of money equation, what annual rate is Kant Miss promising?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Kant Miss Company is promising its investors
that it will double their money every
4
years. What annual rate is Kant Miss
promising? Is this investment a good deal? If
you invest
$450
now and Kant Miss is able to deliver on its
promise, how long will it take your investment
to reach
$28,000?
Using the time value of money equation, what
annual rate is Kant Miss promising?
Transcribed Image Text:Kant Miss Company is promising its investors that it will double their money every 4 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $450 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $28,000? Using the time value of money equation, what annual rate is Kant Miss promising?
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