Question
What would be the compounded annual interest rate you would need to double your $1,000 investment in three years? (5 points) Step-by-step explanation Future Value
What would be the compounded annual interest rate you would need to double your $1,000 investment in three years? (5 points)
Step-by-step explanation
Future Value = Present Value X (1 + Interest Rate)n
$2000 = $1000 X (1 + Interest Rate)3
Interest Rate = 0.2599 = 25.99% I don't understand where the .2599 in the formula comes from.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The formula for calculating the future value of an inv...
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Step: 2
Step: 3
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
