Answered: You plan to invest $5,000 into an…

You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EB: How much would you invest today in order to receive $30,000 in each of the following (for further...

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Question

You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn?

Question 5 options:

	6.02%
	5.24%
	4.73%
	7.55%
	7.11%

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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