Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a. Invest$400.00and receive$790.15in9years.b. Invest$3,600.00and receive$11,432.56in16years.c. Invest$30,118.98and receive$100,000.00in20years.d. Invest$34,767.89and receive$1,100,000.00in35years.

Future Value = Present value * (1+rate)^n Where rate = rate of interest n = years Therefore, rate =…

Answered: Interest rate (with changing years).…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

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Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces.

a. Invest

$400.00

and receive

$790.15

years.

b. Invest

$3,600.00

and receive

$11,432.56

years.

c. Invest

$30,118.98

and receive

$100,000.00

years.

d. Invest

$34,767.89

and receive

$1,100,000.00

years.

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