You invest $5,000 at 4.5% compounded monthly. What is your economic profit after 4 years if the risk free rate is 3.8%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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You invest $5,000 at 4.5% compounded monthly. What is your economic profit
after 4 years if the risk free rate is 3.8%?
Transcribed Image Text:You invest $5,000 at 4.5% compounded monthly. What is your economic profit after 4 years if the risk free rate is 3.8%?
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