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3 years ago

What is the interest rate for initial investment of $100,000 to grow $300,000 in 10 years

Business

2 answers:

igomit [66]3 years ago

7 0

The interest rate that increases from long-term investment for 10 years is 200%

The following calculations:

(Current investment - Initial investment) / Initial investment x 100% = Result

($ 300,000- $ 100,000) / $ 100,000 x 100% = 2 x 100% = 200%

<h2>Further Explanation </h2>

In investments, the capital you spend to finance the investment must be calculated in the calculation of investment returns.

Return on Investment can be described as the ratio of capital that you spend on investments in proportion to the benefits of the investment.

Calculating Return of Investment is very important because it determines your ability to develop the investment in the future, not just to run it (because investment requires additional capital if you want to develop it).

For some investors, short-term investments are chosen because they have the potential to provide faster returns.

Meanwhile, long-term investments are chosen to take advantage of the compounding effect, minimize risk, and to realize various financial goals in the long run.

Many investors who prefer to accelerate the velocity of money so that they prefer short-term investments so that the return in the form of the principal investment and interest can be obtained more quickly.

The compounding effect is actually very common in the world of investment and credit. It's just that, many investors have not maximized the benefits.

Learn More

Long-term investment brainly.com/question/13810885

investment interest brainly.com/question/13804061

Details

Grade: middle school

Subject: Business

Keyword: long-term, investment, interest

dybincka [34]3 years ago

6 0

Answer:

r=20% or 0.2 %

Calculation:

Solving equation:

r = (1/10)((300000/100000) - 1) = 0.2

r = 0.2

Converting r decimal to R a percentage

R = 0.2 * 100 = 20%/year

The interest rate required to get a total amount, principal plus interest, of $300,000.00 from simple interest on a principal of $100,000.00 over 10 years is 20% per year.

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