A person invests $2,000 annually in an IRA. At the end of 6 years, the amount in

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A person invests $2,000 annually in an IRA. At the end of 6 years, the amount in the fund is $14,000. What annual nominal compounding rate has this fund earned?
In Problem, use graphical approximation techniques or an equation solver to approximate the desired interest rate. Express each answer as a percentage, correct to two decimal places.
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...
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College Mathematics for Business Economics Life Sciences and Social Sciences

ISBN: 978-0321614001

12th edition

Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen

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