Question

"Bill is considering investing $450 at the end of every month in a fixed income instrument. He will receive $27,000 at the end of four years. If interest is compounded monthly, what is the effective annual rate of return earned on the investment

Answer 1

$5400

Step-by-step explanation:

Given the total amount earned after 4 years is $27000 including interest

Then you take 450× 4×12=$ 21 600

27000-21600= $5400