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Problem:
Patricia Johnson made an investment of $18,215.80. From this investment, she will receive $2,000 annually for the next 15 years starting one year from now.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What rate of interest will Patricia's investment be earning for her? (Hint: Use Table 4.) (Round answer to 0 decimal places, e.g. 25%.)
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An approach that uses a number of outcome estimates to get a sense of the variability among potential returns
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