Solved

You Are Investing a Sum of Money for 4 Years

Question 84

Multiple Choice

You are investing a sum of money for 4 years.You earn a simple interest rate of r = 10% for the first 2 years and j12 = 6% for the last 2 years.What is the equivalent effective annual rate of return,j,you earn over each of the 4 years?


A) 8.81%
B) 8.07%%
C) 7.98%
D) 7.84%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents