Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering five- year investment certificates that pay interest compounded quarterly. What is the minimum nominal interest rate he would have to receive to reach his go al? |

Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering five- year investment certificates that pay interest compounded quarterly. What is the minimum nominal interest rate he would have to receive to reach his go al? |

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering five-
year investment certificates that pay interest compounded quarterly. What is the minimum nominal
interest rate he would have to receive to reach his go al? |

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