You have an investment account that started with $2,000 10 years ago and which now has grown to $8,000. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the savings bond earns 13% per year from now on, what will the account's value be 10 years from now?
You have an investment account that started with $2,000 10 years ago and which now has grown to $8,000. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the savings bond earns 13% per year from now on, what will the account's value be 10 years from now?
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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You have an investment account that started with
$2,000
10
years ago and which now has grown to
$8,000.
a. What annual rate of return have you earned (you have made no additional contributions to the account)?
b. If the savings bond earns
13%
per year from now on, what will the account's value be
10
years from now?Expert Solution
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