Lecture Notes on Time Value of Money
Question: Today your stock is worth $50,000. You invested $5,000 in the stock 18 years ago. What average annual rate of return [i] did you earn on your investment? Answer: 13.646%. FUTURE VALUE WHEN RATES OF INTEREST CHANGE. Example: You invest $10,000. During the first year the investment earned 20% for the year. ................
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