What annual rate of return is earned on a $4,000 investment made in year 5 when...

Question

Question

business finance

Answer 1

Answer #1

Annual Rate of Return = [(Ending Value / Begining Value) ^ (1 / number of years)] - 1 = [(8,200 / 4000) ^ (1 / 3)] - 1 = 1.27 - 1 = 0.27 = 27%

Answer 2

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