Effective rate of the compound interest rate or investment

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Reference no: EM131985621

1. You have just received $195,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.4% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)

2. Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.)

A $50,000 zero-coupon bond maturing in 9 years and selling now for $42,035.

Reference no: EM131985621

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