Corporate Finance

posted by .

An investment today of $3,3OO is worth $10,000 IN 8 YEARS. At what rate has your investment been growing(annually) over the eight years ?

For compounding rate of return:

3300*(1+r)^8 = 10000.
so
(1+r)^8 = 10000/3300 = 3.0303

My calculator has a nth root button -- so 1+r=1.14864 so r=14.864%.

(without an nth root button, you can easily get there with successive approximations using something like an EXCL spreadsheet or a hand calculator).

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance Help! 3 questions

    Hi, i was wondering if someone could please help me with these 3 finance questions. it would be must appreciated 1. you receive payments of 1000 dollars every 8 montsh for the next 9 years. the first payment will occur 8 months from …
  2. math

    what formulas do i use for this: Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows. A) Annually B) Quarterly C) Monthly D)Daily (365 days) A) 10000*(1+.05)^10 …
  3. finance

    An investment offers to pay you a $10,000 a year for five years. If it costs $33,520, what will be your rate of return on the investment?
  4. Finance

    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?
  5. Finance

    Walmart wishes to determine the rate of return of an investment made four years ago for $25 000 and currently has a market value of $31 500. During the current year the investment generated cash flows of $1000. Required: What is the …
  6. fnite math

    Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.
  7. Financial Math

    An investment of $2500 accumulates at 6% p.a compounded semi annually for 3 years. At that time, the interest rate is changed to 5% compounded monthly. How much is the investment worth 2 years after the change in interest rate?
  8. Finite Math

    Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.
  9. Finite Math

    Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.
  10. financial management

    a) An investment gives you $10,000 from years 1 through 4 and 40,000 in year 5. If the interest rate is 7.5%, what is the present worth of this investment?

More Similar Questions