Six years ago, Miguel invested $3,500.Today his investment is worth $5659.The internal rate of return on this investment is

Name: Six years ago, Miguel invested $3,500.Today his investment is worth $5659.The internal rate of return on this investment is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) can be calculated using the formula for compound interest: $ FV = PV \times (1 + r)^n $. Here, FV is $5659, PV is $3500, and n is 6 years. Solving for r gives an IRR of approximately 8.34%.

Six Years Ago, Miguel Invested $3,500