Question

You gave $770 to your cousin. As a token of gratitude, your cousin gave you $1,190 at the end of the year instead of $770. If you look at this as an investment, then your annual rate of return would be_____________

Answer 1

annual rate of return = 54.55%

Step-by-step explanation:

given data

gave to your cousin present value = $770

cousin give you future value = $1190

solution

we get here annual rate of return that is express as

annual rate of return =
`(future\ value)/(present\ value)` - 1 ...................1

put here value and we get

annual rate of return =
`(1190)/(770) - 1`

solve it we get

annual rate of return = 54.55%