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m Question 23 (0.5 points) You have $40,000 in your account that you want to grow to triple that amount in 20 years. What ann
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Answer #1

Initial amount in the account(PV) = $ 40,000

Final value (FV) = 3* 40,000 = $ 120,000

Number of years to reach that goal (n) = 20 years

Annual rate of return = (FV/PV)^1/n -1 = (120,000/40,000)^1/20 -1 =0.05646 = 5.65%

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