An amount of principal yields a return of $3000 at the end of each year for...
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An amount of principal yields a return of $3000 at the end of each year for 10 years. Alternatively, the same principal yields a $2100 return at the end of each year for 20 years under the same interest rate. What is the interest rate? An amount of principal yields a return of $3000 at the end of each year for 10 years. Alternatively, the same principal yields a $2100 return at the end of each year for 20 years under the same interest rate. What is the interest rate?
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Answer rating: 100% (QA)
To calculate the interest rate we can use the formula for the present value of an annuity The presen... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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