Question
Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. If the interest is compounded semiannually,
Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. If the interest is compounded semiannually, what is the nominal annual rate of return on the investment? Explain why the answer choice is that and not another answer choice.
A) 3.58%
B) 7.17%
C) 1.79%
D) 7.30%
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Glencoe Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0021400202, 9780021400201
