Answer:
3.3%
Explanation:
The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year.
DATA
Future value = $25,000
Present value = $18,000
Time = 10 years
Formula:
Annual return = [tex](\frac{futurevalue}{presentvalue}) ^{1/time} -1[/tex]
Annual return = [tex](\frac{25000}{18000}) ^{1/10} -1[/tex]
Annal return = 3.3%
