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What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7? A. 10.64%. B. 4.28%. C. 8.04%. D.​ 5.51%.
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24 votes
24 votes
What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?

A. 10.64%.
B. 4.28%.
C. 8.04%.
D.​ 5.51%.

User Mnestorov
by
3.2k points

2 Answers

24 votes
24 votes

Answer:

D

Step-by-step explanation:

It's accumulating for 5 years


17000=13000(1+i)^5\\1.307692308=(1+i)^5\\\sqrt[5]{1.307692308} =1+i\\i=.05511

User Eddie Yang
by
3.2k points
22 votes
22 votes

Answer:

It would be D. 5.51%

User Nadean
by
2.7k points
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