A $1000 investmnet has griwn to $2476 in 8 years. what interest rate (compounded annually) has...

Question

Question

A $1000 investmnet has griwn to $2476 in 8 years. what interest rate (compounded annually) has it earned?

business accounting

Answer 1

Answer #1

To calcualte the interest rate use the formula of Rate in excel

=Rate(nper,pmt,pv,fv)

Where:

nper = 8 Years

pmt = $0

pv = $1,000

fv = $2,476

$=Rate(8,0,\$1000,-\$2476)$

$Rate = 12\%$

So the Interest Rate would be 12% Compounded Annually

I hope this clear your doubt.

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Answer 2

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