Posted: September 22nd, 2016
A local bank is offering a zero coupon certificate of deposit for $25,000. At maturity, three years from now, the investor will receive $32,000. What is the rate of return on this investment?
A local bank is offering a zero coupon certificate of deposit for $25,000. At maturity, three years from now, the investor will receive $32,000. What is the rate of return on this investment?
a. 3 percent
b. 6 percent
c. 9 percent
d. 12 percent
e. 15 percent
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