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CA Homework | Not secure l ezto.mheducation.com/hm.tpx connect FINANCE C4 Homework instructions I help , save & Exit || Submit Question 7 (of 10) value 0.90 points Assume that in 2014, an 1872 $20 double eagle sold for $15,600. What was the rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Rate of return References eBook& Resources Worksheet Leaning Objective 04-23 Calculate the um on atn

Explanation / Answer

Solution:

Future value = Present value (1+rate of return) ^ number of years

Future value =$15,600

Present value =$20

Number of years=2014-1872=142

Rate of return =??

$15,600=$20(1+ rate of return)^142

($15600/$20)^1/142-1=rate of return

Rate of return=(780)^1/142 - 1

Rate of return= 4.81%

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