document.write( "Question 582547: A person pays $100,000 for an investment that promises to pay $15,000 per year at the end of each year for ten years. What is the rate of return on the investment? \n" ); document.write( "
Algebra.Com's Answer #372095 by jim_thompson5910(35256) ![]() You can put this solution on YOUR website! If the investment pays $15,000 for ten years, then it will pay back a total of 10*15000 = 150000 dollars.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Rate of Return = (Final - Initial)/(Initial)\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Rate of Return = (150000 - 100000)/(100000)\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Rate of Return = (50000)/(100000)\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Rate of Return = 0.5\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "So the rate of return is 50% \n" ); document.write( " \n" ); document.write( " |