given answer of this General accounting question Two years ago, you invested $5,000. Today, the investmentis worth $6,500. What annual rate of interest did you earn?a. 15.00 percentb. 30.00 percentc. 14.02 percentd. 7.50 percente. 10.00 percent

Step 1: Define Annual Rate of Interest (Compound Interest Rate) is the percentage rate at which an…

Answered: Two years ago, you invested $5,000.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

See similar textbooks

Similar questions

What rate of interest did you earn on these financial accounting question?
You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2 percent for the first 8 years and 8.6 percent for the next 14 years. What was your annual rate of return over the entire 22 years?Multiple Choice6.40 % 7.75 % 6.28 % 6.98 % 5.58%
Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,405.54 b. $3,310.12 c. $3,215.41 d. $3,100,21
You made an investment of $8,000 into an account that paid you an annual interest rate of 3.1 percent for the first 5 years and 7.5 percent for the next 10 years. What was your annual rate of return over the entire 15 years? Multiple Choice 4.81 % 6.68 % 5.30 % 6.01 % 5.41 %
Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"?
Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
Bruno deposited $7,500 into an investment account and seven years later, the balance in the account was $10,910. What is the rate of return on this investment if interest is compounded annually? 5.5% 6.0% 6.5% 45.5%
Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"? What is the balance in the account after 30 years? How much of this balance corresponds to "interest on interest"? (Round to the nearest cent.)
Suppose you have $1500 in your savings account at the end of a certain period of time. You invested $1100 at a 5.37% simple annual interest rate. How long, in years, was your money invested?
Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What APR did you receive, if the interest was compounded semiannually? b. What APR did you receive if the interest was compounded monthly?
Suppose you deposit $2606.00 into an account today. In 7.00 years the account is worth $3969. The account earned _% per year
Suppose you invest $1,250 in an account paying 8% interest per year. a. What is the balance in the account after 3years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 31 years? How much of this balance corresponds to "interest on interest"?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Two years ago, you invested $5,000. Today, the investment is worth $6,500. What annual rate of interest did you earn? a. 15.00 percent b. 30.00 percent c. 14.02 percent d. 7.50 percent e. 10.00 percent