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

Guest Feb 14, 2017

#1**+5 **

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%

ElectricPavlov
Feb 14, 2017

#1**+5 **

Best Answer

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%

ElectricPavlov
Feb 14, 2017