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Fifteen years ago, your parents opened an investment account with an initial deposit of $5,000. Today, that account is worth $38,563. What average annual rate of return did they earn on their investment?
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Fifteen years ago, your parents opened an investment account with an initial deposit of $5,000. Today, that account is worth $38,563. What average annual rate of return did they earn on their investment?

A. 14.47%
B. 14.59%
C. 14.78%
D. 15.03%

User Kaydeen
by
4.3k points

1 Answer

5 votes

Answer:

B. 14.59%

Step-by-step explanation:

Nper = 15

PMT = 0

PV = -5,000

FV = 38,563

Type = 0

Using the Ms Excel

Rate of return = Rate(Nper, PMT, PV, FV)

Rate of return = Rate(15, 0, -5000, 38,563, 0)

Rate of return = 0.145900003

Rate of return = 14.59%

User AlbertUI
by
4.8k points
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