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# one year ago, you invested \$1,800. today it is worth \$1,924.62. what rate of interest did you earn?

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### James

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## One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn? » MCQ Academy English

One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?Answer:6.92 percent . ... English বাংলা Corporate Finance

One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

6.59 percent 6.67 percent 6.88 percent 6.92 percent

### Note

One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?Answer:6.92 percent .

Tags: The Time Value of Money

## One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn? One year ago, you invested \$1,800. Today it is worth \$1,924.62. The rate of interest is 6.923%. ## One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

Solution:

Invested amount or the present value = \$1,800

Future value = \$1,924.62

Number of years (n)= 1

Rate of interest = ?

The annual compound interest can be found using the formula

rate = [Future value/Present Value]1/n -1

Substituting the known values in the compound interest formula we get

rate = [1924.62/1800] -1

By further calculation

rate = 6.923%

Therefore, the rate of interest is 6.923%

## One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

Summary:

One year ago, you invested \$1,800. Today it is worth \$1,924.62. The rate of interest is 6.923%.

Source : www.cuemath.com

## One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

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## Question:

One year ago, you invested \$1,800. Today it is worth \$1,924.62. What rate of interest did you earn?

## Earnings:

Companies promote their businesses and invest in potential investments to increase their earnings and customers' reach. Managers consider the expected earning and probability of return before investing in a project.

## Answer and Explanation:

Calculation of the interest rate:

Interest Rate = ( Years √ Investment Wort h 1 Year Deposit − 1 ) × 100 % = ( 1 √ \$ 1 , 924.62 \$ 1 , 800 − 1 ) × 100 % = ( \$ 1 , 924.62 \$ 1 , 800 − 1 ) × 100 % = ( 1.069233333 − 1 ) × 100 % = 6.923 %

Interest Rate=(Investment Worth1 YearDepositYears−1)×100%=(\$1,924.62\$1,8001−1)×100%=(\$1,924.62\$1,800−1)×100%=(1.069233333−1)×100%=6.923%

The interest rate is 6.923%.

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James 6 month ago

Guys, does anyone know the answer?