3. What annual rate of return is earned on a $5,000 investment when it grows to...

Question

Question

Answer 1

Answer #1

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

=>

5000 * (1+r)^6 = 7000

=>

return = 5.77%

hence choose c)

Answer 2

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