You have $150,000 to invest today. You found a deal that will pay you $300,000 if...

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You have $150,000 to invest today. You found a deal that will pay you $300,000 if...

You have $150,000 to invest today. You found a deal that will pay you $300,000 if you wait 20 years before you withdraw the money? What is the implied rate of interest in you invest and wait 20 years?

Group of answer choices

3.2%

3.5%

5.1%

6.2%

6.8%

Please help urgently.

business finance

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Answer 1

Answer #1

Ans 3.5%

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period


FV/ PV =	(1 + r )^n
300000/150000 =	(1 + r%)^20
2 =	(1 + r%)^20
r =	3.5%

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Answer 2

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