SOLUTION: What annual rate of return is earned on a $4,000 investment made in year 6 when it grows to $6,200 by the end of year 10? I came uo with 4.441 but it is not correct

Algebra.Com
Question 1092962: What annual rate of return is earned on a $4,000 investment made in year 6 when it grows to $6,200 by the end of year 10?
I came uo with 4.441 but it is not correct
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!
I'll assume this is simple interest



-----------------------






Annual rate = 5.5%
Answer by MathTherapy(10557)   (Show Source): You can put this solution on YOUR website!

What annual rate of return is earned on a $4,000 investment made in year 6 when it grows to $6,200 by the end of year 10?
I came uo with 4.441 but it is not correct
To get a correct answer, you need to be much, much clearer.

For one, are you saying that the investment was made in year 6 and went into year 10? If so, that's a time of 4 (10 - 6) years. 

Furthermore, what's the ANNUAL compounding period? 

RELATED QUESTIONS


What annual rate of return is earned on a $4,000 investment when it grows to $9,600 in... (answered by robertb)

A person wishes to deposit $5,000 per year in a savings account which earns interest of 8  (answered by ikleyn)

Susan invests R45 000 at a simple interest rate of 6% per year. Two years later, she adds  (answered by )

A teenager has $10,000 invested in a checking
account paying 2.5% per year and a savings
 (answered by math_helper)

1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his... (answered by ikleyn)

b) In a certain undertaking the initial investment is TZS 1,000,000,000. Expected... (answered by Theo)

A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate  (answered by Theo)

 A person wants to deposit $10,000 per year for 6 years. If interest is earned at the... (answered by CPhill)

 A person wants to deposit $10,000 per year for 6 years. If interest is earned at the... (answered by CPhill)