SOLUTION: 20 years after purchasing shares in a mutual fund for ​$5,700, the shares are sold for ​$11,200. What is the annual return percentage?

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Question 1141477: 20 years after purchasing shares in a mutual fund for ​$5,700, the shares are sold for ​$11,200. What is the annual return percentage?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
this would be 11200=5700(1+r)^20
or
1.9649=(1+r)^20 Round at end
ln both sides
0.675=20 lo (1+r)
ln (1+r)=0.0337
raise both sides to e power
1.034=1+r
r=0.0343 or 3.4%
Answer by MathTherapy(10557)   (Show Source): You can put this solution on YOUR website!
20 years after purchasing shares in a mutual fund for ​$5,700, the shares are sold for ​$11,200. What is the annual return percentage?
This should be based on SIMPLE INTEREST, and so, A = P(1 + TR)

11,200 = 5,700(1 + 20R) ------- Substituting 11,200, $5,700, and 20 for A, P, and T, respectively 

Solve the above for R. 

You should get: 



OR

Annual return percentage =  

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