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Suppose an investment offers to quintuple your money in 24 months (don’t believe it). What rate of return per quarter are you being offered?

User Nik Kober
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Final answer:

The rate of return per quarter for an investment that offers to quintuple your money in 24 months is approximately 0.339.

Step-by-step explanation:

To find the rate of return per quarter, we need to calculate the growth rate quarterly. A quintuple means multiplying the original amount by 5. So, for an investment to quintuple in 24 months, it needs to grow by a factor of 5. To find the quarterly growth rate, we can use the formula:

(1 + r)^4 = 5

Solving this equation, we find that the rate of return per quarter is approximately 0.339

User Jasonz
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