1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andre45 [30]
2 years ago
14

An investment will increase in value by 250% over the next 25 years. What is the annual interest rate which, when compounded qua

rterly, provides this return
Business
1 answer:
Olenka [21]2 years ago
4 0

The annual interest rate will be 5.04% if the compounded quarterly provides this return.

<h3>What is annual interest rate?</h3>

The annual interest rate means the rate paid on investments without accounting for the compounding of interest within that year.

Let assume that PV = $100

Future Value = $100*(1+2.5)

Future Value = $100*3.5

Future Value = $350

Periods = Years*frequency

Periods =25 *4

Periods = 100

Quarterly Rate = (FV/PV)^(1/Periods)-1

Quarterly Rate = (350/100)^(1/100) - 1

Quarterly Rate = 1.01260642915 - 1

Quarterly Rate = 0.01260642915

Annual rate = Quarterly rate * Frequency

Annual rate = 0.01260642915 * 4

Annual rate = 0.0504257166

Annual rate = 5.04

in conclusion, the annual interest rate will be 5.04% if the compounded quarterly provides this return.

Read more about annual interest rate

<em>brainly.com/question/15728540</em>

You might be interested in
The hair, nose, throat, and infected cuts of an average healthy person A. Carry no harmful bacteria. B. May carry Staphylococcus
EleoNora [17]

Answer:

B. May carry Staphylococcus.

Explanation:

7 0
3 years ago
Lawn maintenance is an alternative energy source career.<br> A. <br> True<br> B. <br> False
Rainbow [258]

Answer:

False

Explanation:

Lawn maintenance isn't

4 0
3 years ago
Which of the following best describes the purpose of raising and lowering the
Alex787 [66]

Answer:

It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made

Explanation:

The Fed decides on required reserve ratio for the banks and other financial institutions; t can lower or raise it. Reserve ratio is the portion of all the money that bank are required  to sets aside and hold onto; this means they are not allowed to lend that out to borrowers. This is a technique that is used to control the supply of money in the economy. By decreasing this ratio, banks will have more money to lend out and vice versa.

3 0
3 years ago
Read 2 more answers
Suppose two firms are in a game​ situation, and they each must decide on a strategy regarding whether to select a high price or
swat32

Answer: Both to select low prices.

Explanation:

One of the vital goal of doing business is profit irrespective of the firm. Every business has to deal with funds and when funds is involved profit has to be made even while serving the client in satisfying conditions. The profit enables the firm to be ran smoothly; it's operations and have a reason to be said that their in business. Every firm ooks out for opportunities to make rofit while giving their best. According to the paragraph profits are high when the price of the commodity is reduced, each firm will reduce it's pricing to ensure they make profit.

4 0
3 years ago
Name the agency that is responsible for tracking changes in the composition of the u.s. labor force and forecasting employment t
nika2105 [10]
<span>The bureau of labor statistics, the principal fact-finding agency for the U.S. government, is the agency responsible for tracking changes in the composition of the U.S. labor force and forecasting employment trends. Collecting, analyzing, processing, and disseminating data to citizens, businesses and government agencies.</span>
5 0
3 years ago
Other questions:
  • Corporate triple A bond interest rates for 12 consecutive months are as follows:
    10·1 answer
  • When you code a union that combines two result sets, each result set must have the same number of columns?
    14·1 answer
  • Company X had a net income of $25,000 for the year ended December 31, 2016. In 2016, Company X paid the out dividends of $10,000
    13·1 answer
  • Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016:
    7·1 answer
  • Changing prices to attract customers is most difficult in a ________.
    13·1 answer
  • What are Mormons?<br> (I just want to know what people think)
    10·2 answers
  • The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is a
    5·1 answer
  • YO CAN YALL SEND HELP MY BRAIN ISNT WORKING TODAY
    5·2 answers
  • Why should good investing be boring?
    5·1 answer
  • Depreciation by Two Methods
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!