The value V after two years of an amount A invested in a mutual fund at an annual yield rate r is V A(1 r) 2 If $10,000 is invested in order that the value V is between $11,000 and $11,500, what rates of yield (to 0 1 ) will provide this

Question: The value V after two years of an amount A invested in a mutual fund at an annual yield rate r is V = A(1

The value V after two years of an amount A invested in a mutual fund at an annual yield rate r is V = A(1 + r)². If $10,000 is invested in order that the value V is between $11,000 and $11,500, what rates of yield (to 0.1%) will provide this?

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We have the formula for V as V A1 r2 Substituting V 11000 and 11500 we get 11000 A1 r2 11500 A1 ... View full answer

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