You have been investing $300 a month for the last 8 years. Today, your investment account is worth $43,262. What is your average rate of return on your investments?

Question

Quizplus · Accepted Answer

The average rate of return is calculated using the formula: r = (FV - PV) / (PV * t), where r is the rate of return, FV is the future value, PV is the present value, and t is the time period. In this case, the future value is $43,262, the present value is $300 * 12 * 8 = $28,800, and the time period is 8 years. Plugging these values into the formula, we get: r = (43,262 - 28,800) / (28,800 * 8) = 0.0969, or 9.69%.

You Have Been Investing $300 a Month for the Last