You have come across an investment opportunity that will give you $51,725.29 in 14 years if you put up $12,000 today.Calculate the annual return on this investment.

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc28_0d10_a768_238e2eed64f3_TB2902_00 - 1
i = 11ea7fdb_fc28_0d11_a768_27df8af5bd86_TB2902_00 - 1 = 11%
Using a financial calculator:
N = 14, PV = -12,000, PMT = 0, FV = 51,725.29, cpt I/Y = 10.999 or 11%

You Have Come Across an Investment Opportunity That Will Give