Question

In: Finance

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?

Solutions

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%

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