An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return did the company make on these deposits?

An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return did the company make on these deposits?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 17E

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An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking (investment) fund that was
to pay an unknown rate of return. If the account had a total of $457,000 immediately after the fifth deposit, what rate of return
did the company make on these deposits?

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