Five years ago, Brian had invested $14,850 in a growth fund. The investment is worth $22,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r)^n, where A is the amount, P is the principal, r is the rate, and n is the number of years. Plugging in the values: 22000 = 14850(1 + r)^5. Solving for r gives approximately 8.18%.

Five Years Ago, Brian Had Invested $14,850 in a Growth