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

Question

Question

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%

Answer 1

Answer #1

B.) 14.04%

FV = PV(1 + r)^t

r = (FV/PV)^1/t - 1

r = ($11,000/$5,000)^1/6 - 1

r = 0.1404 or 14.04%

Answer 2

Similar Homework Help Questions

MC Qu. 18 Solving for Rates What annual rate of return is earned on a Samt......

MC Qu. 18 Solving for Rates What annual rate of return is earned on a Samt... Solving for Rates What annual rate of return is earned on a $5,500 investment made in year 5 when it grows to $12,500 by the end of year 11?
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?
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 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?
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
Solving for Rates What annual rate of return is earned on a $2,000 investment when it...

Solving for Rates What annual rate of return is earned on a $2,000 investment when it grows to $4,500 in eleven years? Present Value of an Annuity Due If the present value of an ordinary, 5-year annuity is $6,600 and interest rates are 11 percent, what's the present value of the same annuity due? Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.80 per share in 2...

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.)
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 $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

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?