Accounting question You deposited $12,000 in an investment account 18years ago, and now the account has $72,000. Whatwas the annual rate of return on this investment?

We use the compound interest formula: A= P / (1+r)^t Where:A=72,000 (final amount)P=12,000 (initial…

Answered: You deposited $12,000 in an investment…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10EB: You have been depositing money into an account yearly based on the following investment amounts,...

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You deposited $12,000 in an investment account 18 years ago, and now the account has $72,000. What was the annual rate of return on this investment?