What is the interest rate of return on this investment

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Question - An investment costs $20,000 today and will return $3,000 at the end of each of the next 10 years. What is the interest rate of return on this investment?

Carl would like to save $100,000 by his 40th birthday to pay for a special midlife crisis vacation. He plans to achieve this by investing equal annual amounts each year beginning on his 24th birthday and ending and including a payment on his 40th birthday. If the investment pays an 11 percent interest rate, what is the size of each annual payment Carl needs to invest?

Reference no: EM132849533

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