You decide to invest $14.4k today into a security that will make fixed annual payments to you of $3620 beginning next year. If the expected rate of return is 3.1 %, then for how many years will you receive payments? (Round to the nearest tenth)

You decide to invest $14.4k today into a security that will make fixed annual payments to you of $3620 beginning next year. If the expected rate of return is 3.1 %, then for how many years will you receive payments? (Round to the nearest tenth)

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....

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You decide to invest $14.4k
today into a security that will
make fixed annual payments to
you of $3620 beginning next
year. If the expected rate of
return is 3.1 %, then for how
many years will you receive
payments? (Round to the
nearest tenth)

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