Rate of return Personal Finance Problem Rishi Singh has $3,300 to invest. His investment counselor suggests that
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Rate of return Personal Finance Problem
Rishi Singh has $3,300 to invest. His investment counselor suggests that Rishi should buy an investment that pays no interest but will be worth $4,100 after 4 years.
a. What average annual rate of return will Rishi earn with this investment?
b. Rishi is considering another investment, of equal risk, that earns an annual return of 3.58%
Which investment should he make, and why?
a. The annual rate of return Rishi will earn with this investment, r, is ?%. (Round to two decimal places.)
b. ?
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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