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Question 2
The value of an investment doubled in 15 years. What was the annual rate of return?

Answer using the digits only. Round answer to the nearest tenth.

Question 3
The value of an investment grew from $800 to $1600 in 8 years. What was the annual rate of return?

Answer with the number only.

Question 4
The value of an investment grew from $100,000 to $200,000 in 20 years. What was the annual rate of return?

Answer with the number only.

Question 5
You invest $500,000 into a mutual fund that is expected to earn 6.95% per year. How long will it take the fund to be worth one million dollars?

Answer with the number of years only, round to the nearest whole number.

Respuesta :

  1. The annual rate of return of the investment that doubled in 15 years is 4.7%.
  2. The annual rate of return of the investment that doubled in 8 years is 9 years.
  3. The annual rate of return of the investment that doubled in 20 years is 3.52%.
  4. The number of years it would take the investment to double is 9.97 years.

What are the annual rate of return?

The formula that can be used to determine the annual rate of return is:

g = (Future value / present value)^(1 / number of years) - 1

2^(1/15) - 1 = 4.7%

(1600 / 800) ^(1/8) - 1 = 9%

(200,00 / 100,000)^(1/20) - 1 = 3.52%

Number of years =  (In FV / PV) / r

Where:

  • FV = future value
  • PV = present value
  • r = interest rate

IN2 / 0.0695 = 9.97 years

To learn more about number of years, please check: https://brainly.com/question/21841217

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