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Rate of return on money multiplier certificates

A leading broker has advertised money multiplier certificates that will triple your money in nine years; that is, if you buy one for $333.33 today, it will pay you $1,000 at the end of nine years.

What rate of return will you earn on these money multiplier certificates?

Solution Preview

The formula to calculate the rate is:

FV = PV*(1+r)^n

Now input the given ...

Solution Summary

The solution computes rate of return you will earn on the money multiplier certificates.