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