Math Problem Statement
You have an investment account that started with
$3 comma 0003,000
1515
years ago and which now has grown to
$18 comma 00018,000.
a. What annual rate of return have you earned (you have made no additional contributions to the account)?
b. If the investment account earns
14 %14%
per year from now on, what will the account's value be
1515
years from now?
Question content area bottom
Part 1
a. What annual rate of return have you earned (you have made no additional contributions to the account)?
Your annual rate of return is
enter your response here%.
(Round to two decimal places.
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Exponential Growth
Algebra
Formulas
Compound Interest Formula: A = P × (1 + r)^t
Rate of Return Formula: r = (A / P)^(1/t) - 1
Future Value Formula: A = P × (1 + r)^t
Theorems
Exponential Growth Theorem
Suitable Grade Level
Grades 11-12
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