Final answer:
The annual rate of return earned on a $1,000 investment that grows to $1,650 in five years, when compounded annually, is 10.53%.
Step-by-step explanation:
To determine the annual rate of return earned on a $1,000 investment that grows to $1,650 in five years, we can use the formula for compound interest:To calculate the annual rate of return on an investment, we can use the compound interest formula:Final Amount = Principal * (1 + Annual Rate of Return)^Number of YearsIn this case, the final amount is $1,650, the principal is $1,000, and the number of years is 5.
Plugging in these values, we get:$1,650 = $1,000 * (1 + Annual Rate of Return)^5Solving for the annual rate of return will give us the answer to the question.Answer: To find the annual rate of return, we need to solve the equation $1,650 = $1,000 * (1 + Annual Rate of Return)^5. The annual rate of return earned on a $1,000 investment when it grows to $1,650 in five years is approximately 10.53% (option d).To determine the annual rate of return earned on a $1,000 investment that grows to $1,650 in five years, we can use the formula for compound interest:To calculate the annual rate of return on an investment, we can use the compound interest formula:Final Amount = Principal * (1 + Annual Rate of Return)^Number of YearsIn this case, the final amount is $1,650, the principal is $1,000, and the number of years is 5.