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Betty and Bob deposit $5,000 in an account. Three years later they deposit an additional $2,000. Ten years after the original deposit the account value
Betty and Bob deposit $5,000 in an account. Three years later they deposit an additional $2,000. Ten years after the original deposit the account value is $32,584.13. Establish an equation of value involving the effective rate of return. Using Newtons Method with an initial guess solution of 20%, explicitly find the next approximate solution for the effective rate of return. Your final answer should be correct to 3 places after the decimal point.
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