What annual rate of return is earned on a $10,000 investment when it grows to $15,000 in 10 years?
A) 1.50 percent
B) 3.97 percent
C) 4.14 percent
D) 5.00 percent

Question

Quizplus · Accepted Answer

The annual rate of return can be calculated using the formula for compound interest: $ A = P(1 + r)^n $. Solving for $ r $ when $ A = 15000 $, $ P = 10000 $, and $ n = 10 $ gives approximately 4.14 percent.

What Annual Rate of Return Is Earned on a $10,000