Ten years ago, B invested $1,250 and the current value is $3,550. An annual percentage rate (APR) is the annual rate which measures the absolute annual cost of funds over the period of a loan or an investment. A P R = F V P V n Here, The annual percentage rate is “ APR ”. The present value is “ PV ”. The future value is “ FV ”. The maturity period is “ n ”.

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Chapter 4, Problem 18PROB

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Ten years ago, B invested $1,250 and the current value is $3,550.

An annual percentage rate (APR) is the annual rate which measures the absolute annual cost of funds over the period of a loan or an investment.

APR=FVPVn

Here,

The annual percentage rate is “APR”.

The present value is “PV”.

The future value is “FV”.

The maturity period is “n”.

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