Homework Help: Finance

Posted by Arielle on Wednesday, October 24, 2012 at 11:38am.

Your friend claims that he invested $5,000 seven years ago and that this investment is worth $38,700 today. For this to be true, what annual rate of return did he have to earn? Assume the interest compounds annually.

Finance - Jennifer, Wednesday, October 24, 2012 at 8:37pm
5000 * (1+x)^7 = 38700

Solve for x

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