Cast Out Co.invested $37,900 in a project.At the end of three years,the company sold the project for $62,500.What annual rate of return did the firm earn on this project?

Name: Cast Out Co.invested $37,900 in a project.At the end of three years,the company sold the project for $62,500.What annual rate of return did the firm earn on this project?
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Quizplus · Accepted Answer

FV = $62,500 = $37,900 × (1 + r)³ r = ($62,500 / $37,900)^1/3 - 1 r = 0.1814,or 18.14% 11ea6c22_9306_b6db_9716_f52aeb846763_TB1200_00