Register
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%.
210k views
5 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 Jon Duffy
by
3.0k points

2 Answers

4 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 Lobsang
by
3.5k points
6 votes

Answer:

It would be D. 5.51%

User BStill
by
2.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.3m questions

4.3m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
Link Copied!