Personal Finance (8th Edition) (What's New in Finance)
Personal Finance (8th Edition) (What's New in Finance)
8th Edition
ISBN: 9780134730363
Author: Arthur J. Keown
Publisher: PEARSON
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Chapter 3, Problem 16PA
Summary Introduction

To determine:

The rate of return on investment of $4,510 for 7 years to get $12,000 after that period.

Introduction:

Interest rate refers to the rate of return that an investor will receive on its investment or it can be refer to as the rate of charge that a borrower is liable to pay periodically on his borrowed amount. The change in interest rate results in the change in the amount to be received or to be paid at the end of a period.

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