Calculate the annual compound rate of interest

Reference no: EM131795366

Question: 1. You put $7,265 into an account and five years later your account balance is $8,654. What was your annual compound rate of interest over the five-year period?

2. How much money must you deposit in an account today to make annual withdrawals of $20,000 at the end of each of the next 20 years? Your account earns interest at the rate of 7.4% compounded annually.

3. If you put $2,400 into an account at the end of each year for the next 10 years, and at the end of 10 years you have $84,567 in your account, what was the annual compound rate of return on your account?

Reference no: EM131795366

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