Answer ? Financial accounting question Two years ago, you invested $5,000. Today, the investment isworth $6,500. What annual rate of interest did you earn?a. 15.00 percentb. 14.02 percentc. 30.00 percentd. 13.06 percente. 12.25 percent

Step 1: Define Annual Interest RateThe annual interest rate is the percentage increase in the value…

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Similar questions

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 %
Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 123456 1.080 1.166 1.260 1.360 1.469 1.587 OA. $23.805 OB. $25,155 OC. $26.580 OD. $23,085 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 MAKED ہے
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%
You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in 11 months, a) what is the present value? $ b) What is the rate of return? (answer as a percent 2 decimal places)
1. Suppose $1000 is invested at the end of each year. Assume the investments earn 10% compounded annually. Calculate the future value of the investments after each of the following number of years. a. 10 b. 20 c. 30
You invest $1,900 three years from today and $1,100 four years from today. How much will you have in 6 years from today if your investments earn 4.13% annually? 3,338 4,353 O 3,301 O2,618
Suppose you inherited $1,135,000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years? a. $117,761.21 b. $108,786.34 c. $111,148.74 d. $22,285.19 e. $93,637.50
You invest $4200 for a period of 7 years. At the end of 7 years your investment has grown to $7200. What is the annual rate of return on this investment? O a. 6.18% b. 10.20% O c. 8.00% O d. 71.43%
If you invested $2500 in an account 12 years ago, and it's worth $4,285 now, what rate of return did you earn on your investment? 14.283% 4.593% 4.760% 5.950% 3.471%
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly? A. 8.07 % B. 8.12 % C. 8.16 % D. 8.24 0/ If an initial investment of $1,000 is invested at 8% interest per year with quarterly compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,082.43 D. $1,281.60
Consider the followingalternatives: i. $120 received in one year ii. $220 received in five years iii. $350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. b. What is your ranking if the interest rate isonly 2% per year? c. What is your ranking if the interest rate is 14% per year?
Rey

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

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. 14.02 percent c. 30.00 percent d. 13.06 percent e. 12.25 percent