Find the effective annual rate #18

Mathematics
Tutor: None Selected Time limit: 1 Day

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.
A.
B.
C.
D.
Nov 8th, 2015

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

r=8%

Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 8th, 2015

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