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RideAnS [48]
3 years ago
11

Three years ago, you invested $2,750. Today, it is worth $3,500. What rate of interest did you earn?

Business
1 answer:
Ket [755]3 years ago
6 0

Answer:

Rate of interest is 8.37%

Explanation:

Future Value = PV(1+r)^{3}

3,500 = 2750 (1+r)^{3}

\frac{3500}{2750} = (1+r)^{3}

\sqrt[3]{\frac{3500}{2750}} = \sqrt[3]{(1+r)^{3}}

1.0837 = 1+r

r = 1.0837 - 1

r = 0.0837

r = 8.37%

Check:

3500 = 2750 (1+0.0837)^{3}

3500 = 3500

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2 years ago
XYZ can buy a Monet for $8,200,000 today. She believes that the masterpiece can be sold in 9 years for $19,600,000. What is the
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Answer:

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Explanation:

we can use the future value formula:

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