Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

What annual rate of return is earned on a $14,000 investment when itgrows to $22.000 in five years?O9.76 percent9.56 percentO 9.11 percentO9.46 percent

Sagot :

Answer

9.46%

Step-by-step explanation

Annual rate of return formula

[tex]\text{ Annual rate of return }=[(\frac{ending\text{ value}}{initial\text{ value}})^{\frac{1}{No\text{ of years}}}-1]\times100[/tex]

In this case, the ending value is $22,000, the initial value is $14,000, and the number of years is 5. Substituting these values into the formula:

[tex]\begin{gathered} \text{ Annual rate of return }={}\lbrack(\frac{22,000}{14,000})^{\frac{1}{5}}-1]\times100 \\ \text{Annual rate of return }=9.46\text{ \%} \end{gathered}[/tex]

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.