Question
Suppose you are an investor and is considering depositing $20,000 initially and making monthly contributions of $250 per month, the first contribution will be one
Suppose you are an investor and is considering depositing $20,000 initially and making monthly contributions of $250 per month, the first contribution will be one month from today into investment. If the investor wants to have a future value of $50,000, what will be the annual rate of interest if he wishes to have this amount in 5 years? Assume interest is compounded monthly
Step by Step Solution
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Step: 1
To find the annual rate for this investment we can use the future value formula for compoun...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
