"Give me $5,000 today and I'll return $10,000 to you in 5 years," offers the investment broker.To the nearest percent,what annual interest rate is being offered?
A) 12.29%
B) 13.67%
C) 14.87%
D) 12.84%

Name: "Give me $5,000 today and I'll return $10,000 to you in 5 years," offers the investment broker.To the nearest percent,what annual interest rate is being offered? A) 12.29% B) 13.67% C) 14.87% D) 12.84%
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

FV = PV(1 + r)^t$10,000 = $5,000(1 + r)⁵r = 2^{1 / 5} − 1r = 0.1487, or 14.87%

"Give Me $5,000 Today and I'll Return $10,000 to You