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You are evaluating an investment you made 7 years ago. At that time, you invested $4,000....

You are evaluating an investment you made 7 years ago. At that time, you invested $4,000. The investment has grown to $6,014.52. What annual rate of return did you earn on this investment? SHOW ALL WORK USING time value of money buttons ON THE TI BA II Plus Calculator for FULL CREDIT.

Please ensure to show each button that needs to be pressed on the TI BA II Plus Calculator.

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Answer #1

Information provided:

Present value= $4,000

Time= 7 years

Future value= 6,014.52

The annual rate of return is calculated by entering the below in a financial calculator:

FV= 6,014.52

PV= -4,000

N= 7

Press the CPT key and I/Y to compute the annual rate of return.

The value obtained is 6.

Therefore, the annual rate of return is 6%.

In case of any query, kindly comment on the solution

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