Carolina Land Trust purchases private land for clean waterway conservation. A benefactor invested $1,000,000 for 15 years and gave the principal and accrued interest of $1,200,000 to the trust. (a) What simple interest rate did the investment earn? (b) Had the interest been compounded annually at that rate, what would have been the value of the gift?

Carolina Land Trust purchases private land for clean waterway conservation. A benefactor invested $1,000,000 for 15 years and gave the principal and accrued interest of $1,200,000 to the trust. (a) What simple interest rate did the investment earn? (b) Had the interest been compounded annually at that rate, what would have been the value of the gift?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 41P

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