If an Initial Investment of $4000 Grows to $5718 in Six

question 88

Short Answer

If an initial investment of $4000 grows to $5718 in six years,find the nominal rate of interest,compounded quarterly,that was earned by the money.

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Definitions:

IRR

Internal Rate of Return, a metric used to estimate the profitability of potential investments.

Initial Cost

The original cost of acquiring an asset before any depreciation, amortization, or similar adjustment.

Cash Inflows

The total amount of money received by a company or individual during a set period.

Payback Period

The duration of time it takes to recover the cost of an investment, calculated as the point where net cash flow equals the initial investment.