Asked by Johnny Tsunami on Jun 14, 2024
Verified
A number of years ago, your client invested $6,000 at a rate of return of 9% compounded annually. If the investment is currently worth $10,968.25, for how long has she held the investment?
Compounded Annually
The process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once a year.
Rate of Return
Rate of return is a measure of the profitability of an investment over a certain period, expressed as a percentage of the original investment.
- Detail the consequences of compound interest for both investments and loans.
- Ascertain the needed rate of return for achieving a certain financial aim.
Verified Answer
JL
Learning Objectives
- Detail the consequences of compound interest for both investments and loans.
- Ascertain the needed rate of return for achieving a certain financial aim.