Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested $5400 in an account that compounds its interest daily. What is the annual interest rate of the account, rounded to 2 decimal places?
Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested $5400 in an account that compounds its interest daily. What is the annual interest rate of the account, rounded to 2 decimal places?
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
Section: Chapter Questions
Problem 1PS
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Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested $5400 in an account that
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A
P =
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Transcribed Image Text:R[(1+1)"-1]
R[1-(1+1)-"]
I = Prt A = P +I
A = P(1+ r)'
A
P =
(1+r)
FV =
PV
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