When your father was born 47 years ago, his grandparents deposited $175 in an account for him. Today, that account is worth $1,900. What was the annual rate of return on this account? Multiple Choice a 3.89 percent B 5.73 percent C 5.00 percent D. 4.86 percent E. 5.21 percent

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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When your father was born 47 years ago, his grandparents deposited $175 in an account for him. Today, that account
is worth $1,900. What was the annual rate of return on this account?

Multiple Choice
a 3.89 percent
B 5.73 percent

C 5.00 percent
D. 4.86 percent
E. 5.21 percent

Expert Solution
Step 1

Amount deposited $175.

Term is 47 years

Value of account today $1,900

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