Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds monthly, he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be?
Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds monthly, he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be?
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 7CE
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Chester hopes to earn $1200 in interest in 2.5years time from $60,000
that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds monthly, he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be? Round to two decimal places.
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