What annual compound interest rate is required for an investment to grow by 32% in 7...

What annual compound interest rate is required for an investment to grow by 32% in 7 years if interest is compounded 348 times per year?

Expert Solution

Ans 3.97%

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period

FV/ PV =	(1 + r )^n
1.32 / 1 =	(1 + r%/348)^2436
1.32 =	(1 + r%/348)^2436
r =	3.97%

jeff jeffy answered 3 years ago

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