Question
In: Finance
a certain amount was invested on 01/01/2013, which generates $2,000 at the beginning of every month in year 2013. The interest rate on the investment was 18%. The original investment and the interest
A certain amount was invested on 01/01/2013, which generates $2,000 at the beginning of every month in year 2013. The interest rate on the investment was 18%. Calculate the original investment and the interest .
Solutions
Expert Solution
The interest rate on the investment was 18%. The original investment and the interest earned can be calculated as follows:
R = $2,00
n = 12
i = 18%/12 = 1.5%
Original Investment = PV of annuity due on 01/01/2013
Earned amount of interest = [($2,000*12) – $22,142.24] =$1,857.76
$1857.76
Arjoma Karan answered 2 years agoRelated Solutions
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