Problem 02.049 - Calculation of unknown interest rate An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return did the company make on these deposits? The rate of return that the company made was |%.

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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Problem 02.049 - Calculation of unknown interest rate
An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was
to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return
did the company make on these deposits?
The rate of return that the company made was
|%.
Transcribed Image Text:Problem 02.049 - Calculation of unknown interest rate An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return did the company make on these deposits? The rate of return that the company made was |%.
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