Question

- What annual rate of return is earned on a $1,000 investment when it grows to $1,800 in six years? - How long will it take $2,000 to reach $5,000 when it grows at 10 percent per year? - At age 25, you invest $1,500 that earns 8 percent each year. At age 40, you invest $1,500 that earns 11 percent per year. In which case would you have more money at age 65? - What annual rate of return is implied on a $2,500 loan taken next year when $3,500 must be repaid in year 4?

Name: finance please answer what annual rate of return is earned on a 1000 investment when it grows to 1800 in six years how long will it take 2000 to reach 5000 when it grows at 10 percent per ye 87164
Uploaded: 2023-10-31T21:59:04-08:00
Duration: 3 min 56 s
Channel: Akash M
Description: finance please answer what annual rate of return is earned on a 1000 investment when it grows to 1800 in six years how long will it take 2000 to reach 5000 when it grows at 10 percent per ye 87164

          - What annual rate of return is earned on a $1,000 investment when it grows to $1,800 in six years?
- How long will it take $2,000 to reach $5,000 when it grows at 10 percent per year?
- At age 25, you invest $1,500 that earns 8 percent each year. At age 40, you invest $1,500 that earns 11 percent per year. In which case would you have more money at age 65?
- What annual rate of return is implied on a $2,500 loan taken next year when $3,500 must be repaid in year 4?

Added by Eric P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

10/31/2023

Step 1

The formula to calculate the annual rate of return is: (Final Value / Initial Value)^(1/Number of Years) - 1. So, in this case, the annual rate of return would be: (1800 / 1000)^(1/6) - 1 = 0.102 or 10.2%. Show more…

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- What annual rate of return is earned on a $1,000 investment when it grows to $1,800 in six years? - How long will it take $2,000 to reach $5,000 when it grows at 10 percent per year? - At age 25, you invest $1,500 that earns 8 percent each year. At age 40, you invest $1,500 that earns 11 percent per year. In which case would you have more money at age 65? - What annual rate of return is implied on a $2,500 loan taken next year when $3,500 must be repaid in year 4?