Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 9 a local bank is running the following adverti

9 A local bank is running the following advertisement in the newspaper:...

90.2K

Verified Solution

Question

Finance

9 image
A local bank is running the following advertisement in the newspaper: "For just $3,000 we will pay you $210 foreverl" The fine print in the ad says that for a $3,000 deposit, the bank will pay $210 every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the rate of return of this investment)? The interest rate the bank is advertising is \%. (Round to the nearest integer.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Economics
1.2K views

Suppose price-taking firms have cost functions given by C(q) = 90 + 5q + 0.025q2. a. What...

Mechanical Engineering
1.2K views

name 5 colors of wire that go to a thermostat and name what they control

Finance
1.2K views

calls puts strike jul aug oct jul aug oct 165 2.70 5.25 8.10 2.40 4.75 6.75 170 0.80 3.25 6.00 5.75 7.50 9.00 1. Buy one august 165 call contract. Hold it until the option expire. Determine the profits...

Biology
1.2K views

Animals help make the soil more fertile and better for growing plants by leaving behind...

Biology
1.2K views

FRET was used to study the interaction between 2 molecules Fluorophores used were Cyan Fluorescent...

Calculus
1.2K views

The expression cos(?/2)cos(?/5) + sin(?/2)sin(?/5) can be rewritten as which of the following?A) cos(7?/10)B)...

Calculus
1.2K views

Use the graph to state the absolute and local maximum and minimum values of the...

Algebra
1.2K views

Let a 3 0 1 6 2 1 and 0 2 0 a Normalize each...

Accounting
1.2K views

Roan Co enters into a contract with a major chain of retail stores. The customer...

Finance
1.2K views

You bought a 28.0-year, 8.95% semi-annual coupon bond today and the current market rate of...

Accounting
1.2K views

When dealing with issues such as professional ethics, the stakes can be high. This is...

Accounting
1.2K views

During 2013, Blue Inc., a furniture store, issued two different series of bonds, details of...