Question 491153: My parents opened an investment account 15 years ago, with an initial deposit of $5000. Today, that account is worth $39,533.32. What average annual rate of return did they earn on their investment?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! My parents opened an investment account 15 years ago, with an initial deposit of $5000. Today, that account is worth $39,533.32. What average annual rate of return did they earn on their investment?
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A(t) = P(1 + rt)
39,533.32 = 5000(1 + 15r)
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7.9067 = 1 + 15r
6.9067 = 15r
r = 0.4604 = 46.04%
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Cheers,
Stan H.
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