Sixty years ago, your grandmother invested $4,500. Today, that investment is worth $430,065. annually compounded rate of return she earned on this investment? A 10.40% B 12.02% C 6.67% D 11.71% E 7.90%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 18PROB
icon
Related questions
Question

103.

 

Sixty years ago, your grandmother invested $4,500. Today, that investment is worth $430,065.11. What is the average
annually compounded rate of return she earned on this investment?
A 10.40%
B 12.02%
C 6.67%
D 11.71%
E 7.90%
Transcribed Image Text:Sixty years ago, your grandmother invested $4,500. Today, that investment is worth $430,065.11. What is the average annually compounded rate of return she earned on this investment? A 10.40% B 12.02% C 6.67% D 11.71% E 7.90%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT