Stocks and Bonds

Bootlegteen47 · #1 Jan 19, 2008, 07:08 AM

I NEED HELP WITH A COLLEGE ACCOUNTING PROBLEM. I ALSO NEED HELP USING THE FINANCIAL CALCULATOR BECAUSE I DON'T THINK I'M PRESSING THE RIGHT BUTTONS:

QUESTION: An investor expects the value of a $1,000 investment to double within 8 years. What is the expected annual rate of growth in the investment?

What I did on financial calculator: FV=$2,000 (I doubled the investment). PV=$1,000
N=8. Then I hit I/Y and CPT and got 8.00.

I really don't think that it's right. Please help (I may be pressing the buttons wrong on the calculator).

thanks.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!