What annual interest rate will investment earn

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Question

You are considering an investment that costs $500 today and will mature in 10 years with a value of $1,000.

1. What annual interest rate will the investment earn?

2. If, at the end of 10 years, the investment can be renewed for 10 more years at a rate of 15% per year, what will be the value of the investment in 10 years' time (20 years from today)?

Reference no: EM133239406

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