Answered: a $1,400 deposit when $1,800 is paid…

Business

Accounting

a $1,400 deposit when $1,800 is paid back in one year. (Round your answer to 2 decimal places.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year. (Round your answer to 2 decimal places.)

Expert Solution

Step 1

Interest earned is the amount of interest gained from assets that pay the bearer a regular series of regulated payments. Money put in a certificate of deposit or an interest-bearing bank account, for example, can earn interest.

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