Question

An investor who was not as astute as he believed invested $264,500 into an account 12 years ago. Today, that account is worth $204,000. What was the annual rate of return on this account

Answer 1

Answer:

-19.061%

Explanation:

interest earned= principal x time x interest rate

Interest earned = $264,500 - $204,000 = $-60,500

$-60,500 = $264,500 x 12 x interest rate

interest rate = -0.19061 = -19.061%