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If you can invest $ 800 now and receive $ 1,000 at the end of 4 years, what rate of interest will you earn on this investment?

2006-10-24 00:20:33 · 5 answers · asked by Tim H 1 in Business & Finance Personal Finance

5 answers

Your APY (annual percentage yield) would be:

5.7371264%

2006-10-24 00:59:25 · answer #1 · answered by veritas 5 · 1 0

Present Value = $800
Future Value = $1,000
Term = 4 years

Interest Rate = 5.7371%

2006-10-24 01:18:44 · answer #2 · answered by Adios 5 · 0 0

I call that a bad investment.....
Do not do that......You could by a CD, or a stock which will give you a better renturn in just one year...
Do some more research and help yourself...
good luck

2006-10-24 02:50:44 · answer #3 · answered by James 3 · 0 0

Calculating using simple interest, the rate of interest is 6.25 % per annum. Here the assumption is that you are not reinvesting the earnings.

2006-10-24 00:36:55 · answer #4 · answered by akshay pawar 1 · 0 2

20%

2006-10-24 00:28:44 · answer #5 · answered by Des H 1 · 0 2

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