suppose you invest $5,000 into a project and after 17 months yiu sell your share in...
Homework Answers
a)
rate of interest (monthly) = r
t = 17 months , FV = $ 7000 and PV = $ 5000
5000 x (1 + r)17 = 7000
r = 2%
b)
effective annual yield = (1 + r)12 - 1 = 26.81%
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