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I claim I can double your investment in two years. What monthly rate of return am I advertising?
Solution
FV = PV (1+r/n)*n*m
where r= rate of interest
m= period, i.e = monthly =12
n =years = 2year
Let amount invested = X
2X = X(1+r/12)*24
2= (1+0.083333333)
1.0293 -1 = 0.0833
0.3517

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