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Sagot :
Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces:
a. invest $ and receive $ in years.
b. invest $ and receive $ in years
Mentioned Below:-
a. 5.18%;
b. 10.12%;
c. 6.32%;
d. 9.22%.
We apply the formula of Annual rate of return to calculate the four cases.
The formula for calculating the annual rate of return is as below:
Annual rate of return = [tex]year\sqrt{Endingvalue/Beginningvalue}[/tex]-1 ;
So, for each of the cases given, by applying the formula, the detailed calculations for each case will be:
+ For case a :
[tex]12\sqrt{769.5/420}-1[/tex] = 5.18%;
+ For case b:
[tex]14\sqrt{11,567.45/3,000}-1[/tex] = 10.12%;
+ For case c:
[tex]20\sqrt{110,000/32,303.47} -1[/tex] = 6.32%;
+ For case d:
[tex]40\sqrt{1,100,000/32,275.63} -1[/tex] = 9.22%.
A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.
Learn more about the annual rate here:
https://brainly.com/question/13464776
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