Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Get quick and reliable solutions to your questions from a community of experienced experts on our platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

If $240,000 is invested today and returns $432,000 in 10 years, what formula can be used to calculate the interest rate

Sagot :

Zviko

Answer:

r = (FV/PV)^(1/n) – 1

and

Interest is 6.05 %

Explanation:

Interest is calculated as :

r = (FV/PV)^(1/n) – 1

Thus,

The formula that can be used to calculate the interest rate is

r = ($432,000/$240,000)^(1/10) – 1

  = 6.05 %

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.