Sixty years ago, your mother invested $4,500. Today, that investment is worth $430,065.11. What is the average annual rate of return she earned on this investment?
A) 6.67 percent
B) 11.71 percent
C) 7.90 percent
D) 10.40 percent
E) 12.02 percent

Question

Quizplus · Accepted Answer

The average annual rate of return can be calculated using the formula for compound interest: FV = PV * (1 + r)^n. Solving for r gives approximately 7.90 percent.

Sixty Years Ago, Your Mother Invested $4,500