Question
An investment promises to quadruple your money in eight years.If the interest is compounded monthly, what effective annual ratewould you earn? (Hint: Calculate the monthly
An investment promises to quadruple your money in eight years.If the interest is compounded monthly, what effective annual ratewould you earn? (Hint: Calculate the monthly rate and convert thatto the effective annual rate, EAR.)
| A. | 25.99% | |
| B. | 21.90% | |
| C. | 18.92% | |
| D. | 16.65% | |
| E. | 41.42% | |
| F. | 31.95% |
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
