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Determine the rate of return

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Reference no: EM133061357

Question - A national advertising program that costs $250,000 today is expected return a profit (like interest) of $75,000 in 6 years.

Required -

1. Determine the rate of return (interest) using simple interest.

2. Determine the rate of return (interest) using compound interest (compounded annually), where the Future Value would be $250,000 and $75,000 added together.

Reference no: EM133061357

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