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Homework answers / question archive / we have $1,000 and we are offered to put it in investments that will double this money in 8 years, what is the annual rate of return? Select one: O a
we have $1,000 and we are offered to put it in investments that will double this money in 8 years, what is the annual rate of return? Select one: O a. 8% b. 10% O c. 9% d. 6%
The annual rate of return is computed as shown below:
Future value = Present value x (1 + r)n
$ 2,000 = $ 1,000 x (1 + r)8
2 1 / 8 - 1 = r
r = 9% Approximately
