What annual rate of return is earned on a $3,400 investment when it grows to $7,300...

Question

Question

What annual rate of return is earned on a $3,400 investment when it grows to $7,300 in eighteen years?

business finance

Answer 1

Answer #1

Future Value = Present Value * (1+r)^n

7300 = 3400*(1+r)^18

(1+r)^18 = 7300/3400

= 2.14705882353

1+r = 2.14705882353^(1/18)

= 1.04336382407

r = 1.04336382407-1

= 0.04336382407

= 4.34%

Answer 2

Similar Homework Help Questions

MC Qu. 15 Solving for Rates What annual rate of return is earned on a $amt......

MC Qu. 15 Solving for Rates What annual rate of return is earned on a $amt... Solving for Rates What annual rate of return is earned on a $3,400 investment when it grows to $7,300 in eighteen years? o o o of
What annual rate of return is earned on a $3,300 investment when it grows to $7,100...

What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in twelve years?
What annual rate of return is earned on a $5,000 investment when it grows to $9,000...

What annual rate of return is earned on a $5,000 investment when it grows to $9,000 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What annual rate of return is earned on a $5,000 investment when it grows to $8,500...

What annual rate of return is earned on a $5,000 investment when it grows to $8,500 in four years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
3. What annual rate of return is earned on a $5,000 investment when it grows to...

3. What annual rate of return is earned on a $5,000 investment when it grows to $7,000 in six years? A. 1.40 percent B. 5.45 percent C. 5.77 percent D. 40.00 percent
What annual rate of return is earned on a $5,000 investment when it grows to $10,250...

What annual rate of return is earned on a $5,000 investment when it grows to $10,250 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Please show step by step

Solving for Rates What annual rate of return is earned on a $3,500 investment when it...

Solving for Rates What annual rate of return is earned on a $3,500 investment when it grows to $7,500 in seventeen years?
What annual rate of return is earned on a 5,100 investment made in year 4 when...

What annual rate of return is earned on a 5,100 investment made in year 4 when it grows to $11,300 by the end of year 10?
What annual rate of return is earned on a $4,000 investment made in year 5 when...

What annual rate of return is earned on a $4,000 investment made in year 5 when it grows to $8,200 by the end of year 8? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Solving for Rates What annual rate of return is earned on a $5,000 investment made in...

Solving for Rates What annual rate of return is earned on a $5,000 investment made in year 4 when it grows to $11,000 by the end of year 10? A.) 45.45% B.) 14.04% C.) 21.79% D.) 8.20%