Question

If an investment advisor promises to double your money every 10 years, he is promising an annual return of approximately _____%

Answer 1

Rate of return (r) = 7.177% (Approx)

Step-by-step explanation:

Assume;

Amount deposit = p

Amount received = 2p

Number of year (n) = 10 year

Find:

Rate of return (r)

Computation:

`A=p(1+r)^n \\\\ 2p = p(1+r)^(10) \\\\r=0.07177\\\\r=7.177%`

Rate of return (r) = 7.177% (Approx)