What is the effective annual rate of interest
Problem:
I have 35,000 in an investment account. I would like the account to grow to $100,000 in 10 years, I don't want to make any payments to the account. What is the effective annual rate of interest that I need to achieve my goal.
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What interest rate would I earn if i chose to buy the bond at the price they are offering.
What is the effective annual rate of interest that I need to achieve my goal.
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How much difference is there in total interest paid by the 2 competing investments?
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