Pregunta
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to
know what annual rate of return each choice produces.
a. Invest
and receive
in 11 years.
b. Invest
and receive
in 17 years.
c. Invest
and receive
in 20 years.
d. Invest
and receive
in 40 years.
a. What annual rate of return will Keiko earn if she invests
today and receives
in 11
years?
(Round to two decimal places.)
know what annual rate of return each choice produces.
a. Invest
b. Invest
c. Invest
d. Invest
a. What annual rate of return will Keiko earn if she invests
years?
Ask by Alexander Vaughn. in the United States
Jan 22,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
The annual rate of return is 4.70%.
Solución

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Respondido por UpStudy AI y revisado por un tutor profesional
Como
Extra Insights
To find the annual rate of return, we can use the formula for compound interest, which is:
where:
-
is the amount received in the future ($746.23), -
is the present investment amount ($450.00), -
is the annual interest rate (as a decimal), -
is the time in years (11).
Rearranging the formula to solve for
:
Plugging in the numbers:
Calculating that gives:
Converting this to a percentage and rounding to two decimal places, Keiko’s annual rate of return is approximately
.

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