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Rate of Return on Rishi's Investment

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Rishi Singh has $1,500 to invest. His investment counselor suggests an investment that pays no stated interest but will return $2,000 at the end of 3 years.

a) What annual rate of return will Rishi earn with this investment?

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Solution Summary

The solution determines the rate of return on Rishi's investment. The investment is compounded for 3 years.

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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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