Determine the equivalent discount rate for period length

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Reference no: EM131980495

1. What annual rate of return is earned on a $5,000 investment when it grows to $8,500 in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. Your bank is offering you an account that will pay 27% interest in total for a? two-year deposit. Determine the equivalent discount rate for a period length? of:

a. Six months.

b. One year.

c. One month.

a. Six months.

The equivalent discount rate for a period length of six months is ________________%. ?(Round to two decimal? places.)

Reference no: EM131980495

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