Find the effective annual rate #18

timer Asked: Nov 8th, 2015
account_balance_wallet $5

Question Description

Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.

Tutor Answer

School: New York University

Thank you for the opportunity to help you with your question!

24000(1+r)^5 = 34616

(1+r)^5 =34616/24000

1 + r=fifth root of 34616/24000

1 + r =1.076

r=0.076 * 100


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