What annual rate must be earned to turn $50,000 into $250,000 in 15 years? 12.25% 8.45%...

Question

Question

What annual rate must be earned to turn $50,000 into $250,000 in 15 years?

12.25%

8.45%

11.33%

10%

Answer 1

Answer #1

Please provide rating... (note we have assumed that interest is compounding annually)

we have to use financial calculator to solve this problem

Put in calculator -

PV	(50,000)
FV	250000
PMT	0
N	15

Compute I	11.33%

Correct answer is option		11.33%

Answer 2

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