Answer: The average annual rate of return is 7.90% on which she earned.
Step-by-step explanation:
Since we have given that
Amount invested 60 years ago = $4500
After 60 years, Worth of investment = $430065.11
We need to find the average annual rate of return.
As we know the formula for "Rate of return":
[tex]r=\dfrac{Future\ value}{Present\ value}^{\dfrac{1}{time}}-1\\\\r=(\dfrac{430065.11}{4500})^{\frac{1}{60}}-1\\\\r=7.90\%[/tex]
Hence, the average annual rate of return is 7.90% on which she earned.
