An investment opportunity offers to pay out $102 two years for now. In order to receive this payout, you must invest $74 today. What annual rate of return is this investment offering? Put your answer in decimal form and round to four decimal places
FV=PV(1+r x t ) r = interest rate /year t = number of years
102 = 74 (1+r x 2 )
1+ 2r = 102/(74 )
r =.1891892=18.9189%
FV=PV(1+r x t ) r = interest rate /year t = number of years
102 = 74 (1+r x 2 )
1+ 2r = 102/(74 )
r =.1891892=18.9189%