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You deposit $1000 today, $2000 one year from now, $3000 two years from NOW. Your account value at the end of year 2 is $6250.
You deposit $1000 today, $2000 one year from now, $3000 two years from NOW. Your account value at the end of year 2 is $6250. Assume simple interest rate.
a) Write the Equation of Value (EoV) at "t=2" and solve for the annual interest rate earned by you.
b) Write the Equation of Value (EoV) at "t=0" and solve for the annual interest rate earned by you.
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