7) A return of $104,000 (like interest) will be realized on an original investment of $200,000 over a 5-year period. Determine: (4) a) The rate of return using simple interest. b) The rate of return using compound interest (compounded annually), where the Future Value is $304,000.
7) A return of $104,000 (like interest) will be realized on an original investment of $200,000 over a 5-year period. Determine: (4) a) The rate of return using simple interest. b) The rate of return using compound interest (compounded annually), where the Future Value is $304,000.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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7) A return of $104,000 (like interest) will be realized on an original investment of $200,000 over a 5-year period. Determine: (4)
a) The rate of return using simple interest.
b) The rate of return using compound interest (compounded annually), where the Future Value is $304,000.
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