# Finance

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You currently have \$7,500 to invest. You can invest the full amount now for a periodof 9 years at which time you want to have \$15,000. Approximately what rate ofreturn is needed to accomplish this investment goal?

• Finance -

Pt = Po + Po*rt,
Pt = Po(1+rt),
7500(1+9r) = 15,000.
Divide both sides by 7500:
1 + 9r = 2,
9r = 2 - 1 = 1.
r = 1 / 9 = 0.111 = 11.111%.

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