What interest rate would the investment have to yield

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Q1. Janet has $2,300 that she is looking to invest. Her friend Sarah approached her with an investment opportunity that could give Sarah $4,600 in 4 years. What interest rate would the investment have to yield in order for Janet's friend to deliver on her promise? (Answer needs to be stated as a decimal. For example: .1182) Round to four decimal places.

Q2. Kimberly will receive from her investment cash flows of $3,125, $3,500, and $3,850 at the end of years 1, 2 and 3 respectively. If she can earn 7.5 percent on any investment that she makes, what is the future value of her investment cash flows at the end of three years? (Round to two decimal places.)

Reference no: EM132561828

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