Asked by Kericia Halliday on May 11, 2024
Verified
Cecilia Jeffries purchased an investment for $49090.75. From this investment she will receive $5000 annually for the next 20 years starting one year from now. What rate of interest will Cecilia be earning on her investment?
Interest Rate
The share of a loan subjected to interest charges for the borrower, often expressed as an annual percentage of the total loan that is yet to be paid.
Annual Payment
A payment made once a year, often in the context of loans, leases, or insurance policies.
Investment
The allocation of resources, usually money, in order to generate income or profit.
- Compute the interest rate for a specified investment situation.
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DM
Learning Objectives
- Compute the interest rate for a specified investment situation.