Knowee
Questions
Features
Study Tools

You invest $9,000.00 today.  In 7 year's time, you expect the investment to grow to $15,500.00.What is the rate of return on your investment (in percent per annum)?Round your answer to 2 decimal places. E.g. if the answer is 5.8312%, please type 5.83 in the answer box (do not type the percentage sign).

Question

You invest 9,000.00today. In7yearstime,youexpecttheinvestmenttogrowto9,000.00 today.  In 7 year's time, you expect the investment to grow to 15,500.00.What is the rate of return on your investment (in percent per annum)?Round your answer to 2 decimal places. E.g. if the answer is 5.8312%, please type 5.83 in the answer box (do not type the percentage sign).

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the rate of return on your investment, we can use the formula for compound interest and solve for r (rate):

A = P (1 + r)^t

where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) t = time the money is invested for in years

Given: A = 15,500P=15,500 P = 9,000 t = 7 years

Substituting these values into the formula and solving for r:

15,500=15,500 = 9,000 (1 + r)^7

Divide both

This problem has been solved

Similar Questions

Fill in the Blank QuestionFill in the blank question.If you invested $5,000 four years ago and today the value of that money is $5,800, the rate of return for the entire period would be %.

An investor has accumulated $6,900 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 5%. A one-year bank certificate of deposit will pay 7%, but the minimum investment is $9,900.Required:Calculate the amount of return the investor would earn if the $6,900 were invested for one year at 5%.Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 15%, and then $9,900 were invested for one year at 7%.Calculate the net rate of return on the investment of $6,900 if the investor accepts the strategy of part b

A company invests $38,900 and receives net cash inflow of $10,000 each year for five years.  What is the internal rate of return?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a5%b7%c9%d11%

. A year ago, you invested $12,000 in an investment that produced a return of 16%. What is yourapproximate annual real rate of return if the rate of inflation was 2% over the year?A. 18%.B. 2%.C. 16%.D. 15%.E. none of the above

Calculate the Rate of Return on an initial investment of $6,000 valued at $6,500. Responses8.3%8.3%6.5%6.5%4.3%4.3%9.5%

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.