Cast Out Co.invested $16,200 in a project.At the end of two years,the company sold the project for $23,800.What annual rate of return did the firm earn on this project?

Name: Cast Out Co.invested $16,200 in a project.At the end of two years,the company sold the project for $23,800.What annual rate of return did the firm earn on this project?
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Question

Quizplus · Accepted Answer

$23,800 = $16,200 × (1 + r)²;r = ($23,800/$16,200)^1/2 - 1 = .2121,or 21.21%