1. Suppose you invested $3,700 nine years ago into an investment which pays interest monthly. Your investment is currently worth $23,000. What is your monthly rate of return? (1.71%) Annual rate? (20.48%) Effective annual rate? (22.51%) answers for each question are in parenthesis.
How do you solve each algebraically?
2. If your father has the desire to retire in 17 years, how much money will he need to invest today to meet his goal of having $700,000 at retirement if he is able to receive a 4.9% semiannual interest rate? ($137,636) the answer is in parenthesis.
How do you solve this algebraically and in excel.